Elon Musk's Fortune Plummets by $650 Billion Amidst Tesla and SpaceX Stock Declines

Elon Musk's vast fortune has experienced a dramatic decline, shedding approximately $650 billion from its peak and settling around $684 billion, according to the Bloomberg Billionaires Index. This significant reduction in net worth is primarily driven by the falling stock prices of his two major ventures, electric vehicle maker Tesla and aerospace giant SpaceX.

Musk's wealth had previously soared, crossing the symbolic threshold of $1 trillion for the first time in June. This surge was largely fueled by SpaceX's stock market debut. Musk holds about 42% of the aerospace company's capital, and its valuation saw a substantial increase upon its initial public offering, mechanically boosting his personal wealth. He himself noted in February that his net worth was "almost entirely due to shares held in Tesla and SpaceX."

However, the trajectory reversed sharply. SpaceX experienced a correction in its stock valuation following the initial euphoria of its listing. A failed test launch of its Starship rocket on July 16 exacerbated this downturn, single-handedly reducing Musk's fortune by over $45 billion. Over the past six weeks, SpaceX shares have plummeted by 32.67%, falling from over $200 on June 12 to $108.37 by early August.

Tesla has also contributed to this decline. The automotive company has faced a more challenging period on the stock market, erasing tens of billions of dollars from its principal shareholder's net worth. Musk owns between 11% and 12% of Tesla's capital. Over the last six months, the company's stock has dropped 26.25%, falling to $311.21 in early August from around $445 in mid-May. Musk himself has responded to this significant wealth erosion with humor, posting a brief message on X in late July.

“

My net worth is almost entirely due to shares held in Tesla and SpaceX.