Musk, who called himself a 'former trillionaire,' sees assets plummet as SpaceX stock crashes

Elon Musk, the CEO of Tesla, has seen his net worth drop below $700 billion, a threshold not crossed since December. His fortune had previously soared to as high as $1.4 trillion.

The significant decrease is directly linked to a sharp decline in the stock value of his space exploration company, SpaceX. According to Forbes, Musk's net worth fell by $29.5 billion to $695.7 billion in a single day. This drop occurred even as SpaceX successfully conducted its 13th Starship test flight on June 24, which included deploying 20 Starlink V3 satellites and achieving a successful soft landing in the Indian Ocean.

Despite the Starship test flight's successes, investors appear concerned about the timeline for commercializing the fully reusable technology. Seth Seifman, an analyst at JP Morgan, predicts that progress and setbacks will continue over dozens of test phases until 2027. Market observers are also considering the possibility of SpaceX's stock price falling below $100 per share. Morgan Stanley analysts noted that if the stock drops below this mark, it could signify that investors are not valuing SpaceX's AI business.

Forbes reported that Musk's net worth peaked at $1.45 trillion on June 16. Since then, it has decreased by approximately $750 billion. A portion of this reduction, about $116 billion, reflects changes in the valuation of Tesla stock options. Despite these fluctuations, Musk remains the world's wealthiest individual, significantly ahead of Google co-founders Larry Page and Sergey Brin.