Elon Musk has lost his brief status as the world’s first trillionaire after declines in SpaceX and Tesla shares reduced the value of his holdings.
Musk crossed the $1 trillion mark following SpaceX’s public-market debut on June 12. The rocket and satellite company’s shares initially climbed sharply, lifting its market value above $2 trillion and adding hundreds of billions of dollars to Musk’s estimated fortune.
SpaceX Completed a Record-Setting IPO
SpaceX priced its initial public offering at $135 per share, valuing the company at approximately $1.77 trillion before trading began. The company sold 555.6 million shares in the initial offering and raised $75 billion.
After underwriters fully exercised their option to purchase additional stock, SpaceX completed the offering with gross proceeds of approximately $85.7 billion.
The shares opened at $150 and closed their first trading day at $160.95, giving SpaceX a market capitalisation of about $2.1 trillion. The increase briefly pushed Musk’s estimated wealth beyond $1 trillion.
Speaking around the listing, Musk said SpaceX wanted to take people to the Moon, Mars and eventually farther into space. The company operates the Starlink satellite network while continuing to develop its Starship launch system.
Share Price Decline Reduces Musk’s Wealth
SpaceX shares later fell from their post-listing high as investor enthusiasm cooled and technology stocks faced broader selling pressure. The stock closed at $153.23 on June 26, only slightly above its opening price and about 17% lower for the week.
Changes in Tesla’s share price also affected Musk’s ranking because much of his wealth is tied to equity in the electric vehicle company. His fortune therefore changes substantially when either company’s market value rises or falls.
The Bloomberg Billionaires Index placed Musk below the $1 trillion threshold after the declines, although he remained the world’s wealthiest person by a wide margin. Real-time estimates from Bloomberg and Forbes can differ because they use different methods to value private holdings, public shares, debt and other assets.
Musk could regain trillionaire status if SpaceX or Tesla shares recover. His position remains closely linked to market prices rather than cash or other readily available assets.
Featured image credits: Steve Jurvetson via Flickr
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