Elon Musk’s fortune slumps to pre-SpaceX IPO levels after rout

Elon Musk, the world's first trillionaire, has witnessed a dramatic slump in his fortune after SpaceX's shares took a significant dive. According to the Bloomberg Billionaires Index, Musk's wealth, which peaked at around $1.33 trillion on June 16, has now plummeted to $684 billion. This $600 billion loss in just over a month is unprecedented, surpassing the net worth of any other individual on Bloomberg's list of the world's richest people, apart from Musk himself.

Shares of SpaceX, formerly known as Space Exploration Technologies Corp., surged to a record high of $201.80 in June 16 but have since plummeted by 46%, trading at a record low of $108.37. In the coming month, as many as 911.5 million shares, held by insiders and early backers, will be unlocked, potentially exacerbating the downward pressure on the stock price.

Moreover, the short interest in the company has surged to 219.3 million shares as of July 29, representing over one-third of those available for public trading. This week, SpaceX will unveil its quarterly earnings as a public company, adding another catalyst for the drop in Musk's wealth. Recently, Tesla Inc., Musk's other significant holding, has experienced a 17% decline in shares since its second-quarter results were released on July 22.

The company reported $5.8 billion in capital expenditures, with Musk acknowledging it as a "massive capex year." Tesla recorded its first cash-negative quarter in two years, overshadowed by lower revenues despite better-than-expected car deliveries. Meanwhile, Tesla's shares are down 36% from their December high. Musk owns Tesla stock valued at $129 billion in Bloomberg's wealth index, while his stake in SpaceX is worth over $550 billion.