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New Delhi: Elon Musk has just become a “million-dollar man,” losing billions off his fortune with a significant drop in the company’s share price created a change in his net worth. Elon Musk’s net worth dropped into the millions of dollars, shortly after the share price of his company SpaceX tumbled by billions. The Grand Ole Opry’s poster boy has fallen from first place to honors of the world’s third richest man at $957 billion.
In the Bloomberg Billionaires Index, which dates to June 16, Musk’s fortune has risen to $1.32 trillion, the highest ever. A sharp drop in SpaceX’s market value, however, nearly stripped the billionaire of his wealth in a matter of days, wiping out almost a loss of $363 billion in his personal fortune. For all its losses, Musk still sits nicely above any of the other billionaires that pull weight globally.
Musk’s net worth hit the trillion-dollar mark earlier this month following a first public listing by SpaceX. The company reportedly erased more than $75 billion in the form of public offerings. Shares of SpaceX surged on investor enthusiasm as its stock also neared a $2 trillion market value and Musk’s net worth reached its highest point ever. The honeymoon, however, only lasted for a short time. SpaceX stocks have lost nearly a third of their value from a recent high on Friday. The biggest hit to the company’s market value was the $16 percent plunge in the CO in a single trading session.
This drop was partly due to SpaceX’s investment-grade bond issuance valued at up to $25 billion and doubts that it would succeed with the listing. The company plans to invest the money in artificial intelligence initiatives, while restructuring existing debt tied to Musk’s broader business association, such as social media platform X and AI company xAI. Investors seemed concerned about the amount of spending involved and the financial obligations for the future.
Musk’s overall financial situation suffered from the recent decline in Tesla’s stock price, as well. His net worth can also shift significantly if there’s a big drop in the valuation of SpaceX and Tesla, since he has a sizable stake in both businesses’ shares. Other investing worries like broader concern over tech stocks, interest rates, and AI-related valuations have also helped drive the recent sell-off, market analysts say. But while Musk has tumbled into the trillionaire category, experts point out that he could regain the rank if SpaceX and Tesla stocks rebound. But, for now, the historic accomplishment has evaporated and demonstrated the fast-paced game of technology and stocks.
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