Elon Musk has lost his trillionaire status after SpaceX shares tumbled more than 30% from their peak, according to the Bloomberg Billionaires Index. Musk's net worth fell to $957 billion, according to the index, just weeks after he became the world's first trillionaire following SpaceX's landmark initial public offering, which valued the company at over $2 trillion. The sell-off in SpaceX and Tesla shares, along with a broader rout in technology stocks, erased hundreds of billions from Musk's fortune.
SpaceX IPO Aftermath
SpaceX shares closed at around $156 on Tuesday, down more than 30% from their intraday peak of $225 on June 16, according to the article. The stock opened at $150 on its market debut and has an IPO price of $135. The recent decline has wiped $600 billion in market value since last week. During the sharp rally that took shares to $225, SpaceX briefly overtook Amazon and Microsoft to become the world's fourth most valuable publicly listed company.
| Metric | Value |
|---|---|
| IPO price | $135 |
| Market debut open | $150 |
| Recent close (Tuesday) | $156 |
| Intraday peak (June 16) | $225 |
| Decline from peak | >30% |
| Market value wiped since last week | $600 billion |
Broader Tech Rout
The decline in SpaceX and other technology stocks comes amid mounting concerns over a potential AI-driven market bubble and the possibility of higher interest rates, the article reported. In the previous session, US semiconductor stocks suffered steep losses as investors pulled money out of AI-linked companies. The Nasdaq Composite declined 2.2%, while the semiconductor index slid 7.9%, reversing some of the strong gains recorded during the recent AI-driven rally. Micron Technology, a key beneficiary of the AI investment boom, was among the hardest hit, with its shares tumbling 13%.
Technology stocks have also been under pressure due to expectations of tighter monetary policy under US Federal Reserve Chair Kevin Warsh. Recent economic data suggests the US economy remains strong, reducing the likelihood of lower interest rates.
IPO Market Performance
Big-ticket IPOs often see sharp ups and downs in their early days on the stock market, the article noted. A Reuters analysis of the 50 largest IPOs by valuation over the past five years found that:
Investors would have earned better returns from an S&P 500 index fund than from these IPOs, about 75% of the time.
The near-term focus for investors will be the trajectory of interest rates and the sustainability of AI-driven valuations. The next milestone for SpaceX will be its first earnings report as a public company, expected later this year.
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