Elon Musk's wealth drops to $797 billion

Elon Musk’s joy at becoming the world’s first trillionaire was short-lived, as a sharp wave of selling in SpaceX shares completely reshaped the landscape, dragging his net worth down to approximately $797 billion. The company had lost nearly $1 trillion in market value compared to the trading peak that followed its listing.

Although Musk still comfortably tops the list of the world’s wealthiest individuals, the developments surrounding SpaceX highlight the rapid shift in investor sentiment, which has moved from buying into the dream to seeking real value.

SpaceX shares fell to around $134, below the initial public offering (IPO) price of $135, after surging to $225 following the IPO in June, marking one of the strongest debuts for offerings in U.S. markets. This means the stock has essentially given up all the gains it made after the listing, a development analysts view as the end of the “initial euphoria” phase that typically accompanies major public offerings.

The decline has reignited the longstanding debate over the company’s fair value. Several investment institutions had warned since the IPO that SpaceX’s valuation relies heavily on ambitious future expectations rather than current operational performance. Elon Musk’s net worth is directly tied to the value of his stakes in his companies, primarily Tesla, SpaceX, xAI, X, Neuralink, and The Boring Company. Consequently, any change in the valuation of these firms immediately impacts his personal wealth, which can rise or fall by tens of billions of dollars over a short period.