The CEO of Tesla, Elon Musk, has experienced the largest loss of personal wealth ever documented after a precipitous drop in SpaceX’s valuation destroyed over $350 billion from his fortune in a single week.
Musk’s net worth dropped from $1.45 trillion to just under $1.1 trillion on Tuesday, according to Forbes, after SpaceX’s share price dropped by almost 30% from its peak on June 16.
Following the company’s record-breaking initial public offering (IPO), which valued it at more than $1.8 trillion, SpaceX shares reportedly increased by as much as 67 percent in the first three days of trade.
A major Forbes report reveals that SpaceX suffered its worst single-day market crash in company history on Monday, with its stock plummeting 16.4%. This dramatic sell-off immediately followed the aerospace giant’s announcement of its debut investment-grade bond offering, a massive fundraising campaign designed to secure at least $20 billion to bankroll its aggressive artificial intelligence expansion.
Recall that Musk stock closed at $154 on Monday — above the company’s IPO price of $135 on June 12.
Musk became the world’s first trillionaire after the successful IPO of SpaceX, with his net worth climbing to $1 trillion on June 12, from $707 billion recorded two days before.
However, the stock has fallen for three consecutive trading sessions, wiping out approximately $928 billion in market value and reducing the company’s valuation from a peak of $2.9 trillion to about $2 trillion.
Furthermore, reports indicate that Elon Musk derives most of his wealth from his 38% stake in SpaceX, in addition to his 11% ownership stake in Tesla and investments in several other companies.
Elon Musk makes history, becomes world’s first trillionaire
Meanwhile, this comes barely two weeks after the SpaceX founder and Chief Executive Officer Elon Musk on Friday made a fresh historical mark as he became the first person in history to cross the $1 trillion net worth threshold, CNN has reported.
His rocket company’s successful stock market launch reportedly served as the catalyst for the milestone.
Elon Musk’s projected net worth rose to just over $1 trillion after SpaceX priced its IPO at $135 per share.
Meanwhile, shortly after Friday’s market opened, shares listed on the Nasdaq under the ticker “SPCX” reportedly surged to $165—about 22% above the IPO price—pushing SpaceX’s valuation beyond $2 trillion.
