Elon Musk's net worth has fallen by more than half since mid-June, dropping from a peak of $1.33 trillion to $684 billion as SpaceX shares gave back their post-IPO gains and Tesla disappointed on earnings, according to Bloomberg. The erosion exceeds the total fortune of every other billionaire on the planet except Musk himself.
The SpaceX round trip
SpaceX raised $75 billion in the largest initial public offering on record and debuted at $150 a share in June, an 11 percent premium to its $135 IPO price. The stock surged more than 50 percent in three sessions to a closing high near $202 on June 16, the day Musk's wealth peaked. Since then it has fallen roughly 46 percent to a record low of $108.37, wiping out the entire post-listing rally and then some.
The lockup overhang
The decline may not be finished. About 911.5 million shares become eligible for sale this month as IPO lockup restrictions expire, Bloomberg reported. That volume hitting the market could add fresh pressure to a stock that has already retraced its entire advance.
Tesla's AI bet weighs
SpaceX is not the only drag. Tesla shares have dropped 17 percent since the company reported second-quarter results on July 22, its first profit miss in more than two years. The electric-vehicle maker posted negative free cash flow as operating expenses climbed on accelerated spending for artificial intelligence, robotaxis and humanoid robots. Musk has signaled more than $25 billion in capital expenditure this year, nearly triple 2023's outlay. Lower average selling prices and weaker regulatory-credit revenue offset higher vehicle deliveries, the company said.
What to watch
The lockup expiry calendar is the near-term catalyst for SpaceX. For Tesla, the question is whether the AI and robotics spending produces a revenue stream before the auto business deteriorates further. Musk is betting the combined entity on a pivot that has so far only widened the gap between valuation and cash generation.