Elon Musk, the first person to surpass a personal fortune of $1 trillion, has seen his wealth nearly cut in half in just over a month.
According to Forbes, Musk's net worth is now estimated at $695.7 billion (approximately 1,019 trillion won). This marks a decrease of $754.3 billion (about 1,106 trillion won) from his record high of $1.45 trillion (around 2,125 trillion won) on June 16.
On July 24, Musk posted on his social media platform X, referring to himself as a "(former) trillionaire." This self-deprecating remark reflects his current financial situation, which has fallen below the $1 trillion mark due to declines in the stock prices of SpaceX and Tesla.
Musk became the world's first trillionaire when SpaceX went public last month. The company raised $75 billion through its IPO on June 12, with its market capitalization soaring to approximately $2.1 trillion on its first trading day.
On that day, SpaceX shares closed at $161, 19% above the initial public offering price of $135. As the company's value skyrocketed, Musk's wealth increased to about $1.1 trillion. Following a peak share price of $225, Forbes estimated Musk's fortune reached around $1.4 trillion.
However, the initial excitement surrounding the IPO did not last long. On July 27, SpaceX shares closed at $113.50, marking the lowest closing price since the IPO. During trading, shares fell below $109. Compared to the peak price of $225.64, this represents a decline of nearly 50%, and the shares are now trading below the IPO price of $135.
SpaceX's market capitalization has dropped to about $1.5 trillion. While it remains one of the most valuable companies in the world, much of the value anticipated by the market immediately after the IPO has evaporated.
Investors are concerned about SpaceX's high valuation and the burden of its significant investments in artificial intelligence. The company is investing heavily not only in its space and satellite communications business but also in AI. There is uncertainty about when the AI investments will start generating profits, which has pressured the stock price.
Reuters analyzed that the weakness in SpaceX's stock price reflects some investor concerns about the debt burden for AI investments. Short-sellers betting against SpaceX's stock have reportedly made about $15.5 billion in profits on paper as of July 21 since the IPO.
The decline in Tesla's stock price, another key asset for Musk, has also contributed to the decrease in his wealth.
After Tesla's second-quarter earnings report on July 23, the stock price dropped by about 14%. While quarterly revenue exceeded market expectations, adjusted earnings per share fell short, highlighting the significant investment burden for AI and robotics and autonomous driving. On that day alone, Musk's wealth reportedly decreased by about $18.6 billion.
However, Musk's net worth of $700 billion does not mean he has lost or spent actual cash.
The net worth of billionaires is calculated based on the estimated value of their holdings in stocks and private equity. Most of Musk's wealth is tied to his stakes in companies he leads, such as Tesla and SpaceX. When stock prices rise, his wealth increases, and when they fall, the value of his holdings decreases immediately.
Despite the significant drop in wealth, Musk remains the world's richest person. As of July 27, he topped Forbes' real-time billionaire rankings.
SpaceX is set to announce its first quarterly earnings since going public next week. Investors are keenly awaiting Musk's insights on the company's performance, growth prospects for Starlink and space launch services, AI investment plans, and future spending levels.
* This article has been translated by AI.
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