Elon Musk’s net worth has fallen below $900 billion after the drop in SpaceX stock wiped more than $500 billion from his fortune in less than a month. The reversal follows a strong rally that made Mr. Musk the world’s first trillionaire after SpaceX’s public market debut in June. As the stock fell toward its listing price, Tesla stock also fell, further hurting his overall fortune.
Despite recent losses, the Bloomberg Billionaires Index still ranks Musk as the world’s richest person by a wide margin.
Musk’s fortune diminishes as SpaceX stock declines
Musk’s wealth fell to $879.3 billion on Monday, according to the Bloomberg Billionaires Index, following further declines in SpaceX stock.
SpaceX stock, listed on the Nasdaq under the ticker SPCX, debuted at $135 on June 12. The stock rose above $225 after going public, but has since reversed. By July 17, the stock was trading around $126 after a long period of decline.
The stock has declined in 11 of its first 17 trading sessions and is currently trading more than 38% below its initial high. Bloomberg also recorded that Musk’s wealth fell by $40.7 billion in one day on July 17, as Tesla stock fell along with SpaceX.
IPO momentum gives way to valuation reset
SpaceX raised $75 billion in its initial public offering, pricing 555.6 million shares at $135 per share. The underwriters subsequently exercised their green shoe option, increasing total proceeds to $85.7 billion.
After going public, the company’s market capitalization exceeded $2 trillion, but the company’s stock price lost momentum and it withdrew. Tesla shares also fell 3% in the latest selloff, putting further pressure on Musk’s overall wealth.
Analysts maintain higher price target
SpaceX’s operational schedule has not changed due to recent market performance. The company plans to launch 27 additional Starlink satellites from Vandenberg on Monday and conduct Starship Flight 13 with 20 functional Starlink V3 satellites on Thursday.
Meanwhile, Evercore ISI initiated coverage on SpaceX with an Outperform rating and a $230 price target, representing an approximately 65% upside from recent trading levels. The company projects annual revenue growth of 106% through 2028, with profit margins expected to expand from 35% to 69%. The target price is close to the broad analyst consensus of $236.
Related: SPCX falls 16% despite SpaceX signing $6.3 billion AI computing deal
