Drop in SpaceX shares wipes $58.2 billion from Elon Musk’s fortune
The decline in the value of SpaceX and Tesla shares reduced Elon Musk’s net worth by $58.2 billion in a single day, bringing it down to $941.2 billion.
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Elon Musk’s net worth fell by $58.2 billion on Tuesday following a sharp sell-off in SpaceX shares. SpaceX shares lost approximately 7 percent of their value on July 7, falling below their initial public offering (IPO) price of $150, while Tesla shares also saw a decline of over 4 percent.
The decline in Musk’s wealth was driven by his 4.8 billion SpaceX shares and 350 million share options, as well as approximately 700 million Tesla shares. With this latest drop, Musk’s net worth is estimated to have fallen to $941.2 billion.
Despite the sell-off in the markets, some brokerage firms on Wall Street maintain optimistic assessments for SpaceX. Raymond James analyst Brian Gesuale stated that the company is building the “foundational platform for next-generation industrial capacity.”
JPMorgan analysts, meanwhile, made a notable assessment regarding SpaceX’s goals. The analysts stated, “SpaceX’s goals and potential impact on humanity are greater than any company we have ever seen.”
Raymond James has set a target price of $800 for SpaceX shares. This level indicates a potential upside of approximately 500 percent compared to the IPO price. Arete Research announced a target price of $401, Morgan Stanley $300, and Goldman Sachs $205. The average target price among brokerage firms is at the $236 level.
Musk’s wealth had reached a peak of $1.45 trillion last month. However, as SpaceX shares lost momentum following the IPO and some of the restricted shares in Tesla were excluded from wealth calculations, Musk’s assets have fluctuated around the $1 trillion threshold in recent weeks.