From over $1.3 trillion, Elon Musk’s net worth slips below $700 billion

Elon Musk’s net worth has fallen below $700 billion after climbing above $1.3 trillion in June, marking one of the steepest wealth declines ever recorded. The drop not only erased his brief stint as the world’s first trillionaire but also pushed his fortune to its lowest level since May 20.

According to the Bloomberg Billionaires Index, the Pretoria-born entrepreneur became the world’s first trillionaire on June 12 after SpaceX debuted on the Nasdaq at $150 a share, valuing the rocket company at nearly $2 trillion. At the time of this report, Musk’s net worth had fallen to $684 billion, down sharply from its June peak.

SpaceX selloff cuts Elon Musk’s fortune

Despite the decline, Musk remains the world’s richest person. His fortune has dropped by $636 billion in the past 47 days, falling from a record $1.32 trillion on June 16. The decline has largely mirrored the selloff in SpaceX shares, which have fallen from more than $200 to $108.37.

Much of Musk’s wealth remains tied to SpaceX. He owns 42 percent of the company and controls about 82 percent of its voting power through Class B shares. Since reaching a high shortly after its Nasdaq debut in mid-June, the company’s market value has nearly been cut in half, weighing heavily on his personal fortune.

Investors watch post-IPO share unlock

The pressure on SpaceX has intensified in recent weeks. Investor confidence weakened after the company canceled a Falcon 9 mission that was scheduled to launch 24 satellites from California’s Vandenberg Space Force Base.

Investors are also preparing for the company’s upcoming insider lockup expiration, which could increase the number of shares available for trading. Beginning in August, stock held by early investors and employees will gradually become eligible for sale.

Although Musk’s own holdings remain locked until June 2027, as many as 911.5 million shares could become eligible for sale as early as Aug. 6, two days after SpaceX is scheduled to report its first quarterly results as a public company on Aug. 4. Goldman Sachs, the lead underwriter for the IPO, also has the authority to release certain shares before the lockup expiration.

Tesla earnings miss deepens Musk’s pressure

The pressure on Musk’s wealth has not come from SpaceX alone. Tesla has also endured one of its weakest months since 2022, with its shares falling 18 percent after the company reported weaker-than-expected second-quarter results and negative free cash flow.

Since releasing earnings on July 22, the stock has declined 17 percent after Tesla missed profit estimates for the first time in more than two years. Tesla said profitability was hurt by higher operating expenses tied to artificial intelligence investments, lower average selling prices and weaker regulatory credit revenue, even as vehicle deliveries increased.

Even with the recent setback, Musk has shown no sign of slowing investment. He has said Tesla plans to spend over $25 billion this year, nearly three times last year’s level, to expand its AI capabilities, self-driving technology, robotaxi program and humanoid robotics business.