Elon Musk’s estimated fortune sits at $977.2 billion currently. Forbes reports that Musk dropped $28.6 billion as shares of SpaceX fell more than 3% following Tuesday’s opening bell. Due to this downward pressure on the SpaceX share price, Musk’s total wealth has slipped under the $1 trillion threshold just four days after recapturing that milestone.
Also Read: Tesla Stock: Did Musk Hint at a SpaceX Merger Ahead of Roadster Reveal?
Elon Musk’s Net Worth Falls as SpaceX Stock Drop Erases Trillionaire Status
Paper losses for Musk amounted to $28.6 billion over the course of a few hours on Tuesday, October 13, representing approximately 2.8% of his total wealth as of 12:20 p.m. EDT.
The vast majority of his financial standing stems from the two chief companies where he serves as CEO. August filings indicate he holds an estimated 48.4% stake in SpaceX alongside an approximate 11% share in Tesla, which experienced a 0.5% dip that same morning.
How Elon Musk Loses $28.6 Billion In A Single Morning
Whenever SpaceX shares decline, the impact on Musk is immediate. Tuesday’s pullback stemmed from a broader artificial intelligence chip selloff that originated in Asian markets, impacting TSMC, Samsung, and SK Hynix, while also reducing SoftBank CEO Masayoshi Son’s net worth by roughly $5.5 billion.
The timing proves particularly frustrating. Musk had only reclaimed his status above the $1 trillion mark four days prior, driven by strong late-week rallies across both Tesla and SpaceX shares.
The SpaceX Stock Price Has Been On A Wild Ride Since June
Musk achieved the world’s first trillionaire status following SpaceX’s Nasdaq listing on June 12, marking the largest initial public offering on record. The stock launched at $135 per share and climbed to a peak of $225.64 within days. This is not the first instance of Musk’s wealth dropping beneath $1 trillion, as an identical dip occurred shortly after that initial market debut.
By early August, the share price had descended to $108, wiping out roughly $1.2 trillion in market capitalization. Although shares subsequently rebounded past $160, the stock continues to experience significant volatility.
TradingView data shows the current SpaceX share price at $148.62, reflecting a 2.33% loss for the day and a 10.11% decline over a five-day period.
Tesla And Merger Talk Adds Another Twist
Speculation regarding a potential combination of Musk’s two largest enterprises introduces further volatility to his valuation. Musk recently paired the phrase “Tesla x SpaceX” with a link to a Roadster livestream, though neither corporation has officially confirmed any discussions.
When questioned about a possible merger during Tesla’s July earnings call, Musk offered the following response:
“There’s more and more overlap, especially with Terafab. But obviously, you know, we can’t talk about combining companies on an earnings call. It’s got to be done with the appropriate process.”
Barclays considers an acquisition of Tesla by SpaceX using stock to be the more probable path. Wedbush analyst Dan Ives calculates the probability of a merger at over 80% by the year 2027, explaining in a June interview with CNBC:
“When I look out over the next year, I continue to view that… I would be shocked if it doesn’t happen, just given the synergies, given the cross-pollination, and also for Musk himself, I think it makes the most sense to have all that AI technology under one hood, especially given the controlling nature of SpaceX.”
For the present moment, Musk’s net worth remains under $1 trillion, and further downward movement in SpaceX shares could keep him below that milestone for an extended duration.