Elon Musk's fortune has slid to $684 billion from a peak of $1.33 trillion last month, leaving him poorer than before SpaceX's record public listing.
Key Points:
- Musk's wealth peaked near $1.33 trillion on Jun. 16 and now stands at $684 billion.
- SpaceX shares have fallen 46% from their closing high to a record low of $108.37.
- Up to 911.5 million insider shares become tradable on Aug. 6, two days after the first earnings report.
SpaceX Stock Rout Erases Elon Musk's Trillionaire Peak
Space Exploration Technologies Corp. shares hit a closing high of $201.80 on Jun. 16, then tumbled 46% to a record low of $108.37. A successful Starship flight from the company's Starbase site in South Texas last week did nothing to slow the retreat. The Bloomberg Billionaires Index puts Musk's remaining rocket stake above $550 billion, with his Tesla holding worth another $129 billion.
The drop of more than $600 billion in just over a month exceeds the entire net worth of anyone else who has ever ranked among the world's 500 richest people, and Musk is the only exception. Tesla has deepened the slide, falling 17% since second-quarter results landed on Jul. 22 and trading 36% below a December high.
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SpaceX Short Sellers And S3 Partners Target Aug. 6 Unlock
Short interest reached 219.3 million shares as of Jul. 29, up from 23.3 million on Jun. 16, according to S3 Partners.
That figure equals roughly 34% of the stock available for public trading, since only about 5% of total shares are free to trade. The bearish position is worth $24.6 billion, more than traders have wagered against Tesla.
SpaceX reports quarterly results on Aug. 4 for the first time as a public company, and as many as 911.5 million insider shares become eligible for sale two days later. "The big bet right now is on the unlock," said Sam Pierson, director of research at S3.
Analysts expect much of that freed stock to reach the market. Morningstar analyst Nicolas Owens has flagged early backers who hold shares with low cost bases after long waits, a group with clear reason to sell. The carmaker adds a second worry, because its Jul. 22 report showed $5.8 billion of capital spending and the first cash negative quarter in two years, which Musk described as part of "a massive capex year."
SpaceX IPO Record Fades Seven Weeks After Nasdaq Debut
The reversal comes barely seven weeks after the largest stock offering in market history, a debut that turned a 24-year-old private company into a Nasdaq listing.
SpaceX priced about 555.6 million shares at $135 apiece and raised roughly $75 billion, a deal that valued the company near $1.77 trillion.
The stock opened at $150 on Jun. 12 and closed its first session at $161, a gain of more than 19%. Days later Musk crossed $1 trillion on paper, the first person ever to do so.
Shares now change hands about 20% below the offering price, and the first insider selling window has yet to open.
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