New York: Elon Musk’s net worth has fallen by $28.6 billion to an estimated $977.2 billion after shares of SpaceX declined by more than 3% following the opening of trading on October 13, according to Forbes magazine.
The decline pushed Musk’s fortune below the $1 trillion mark, ending his latest brief spell as the world’s first trillionaire. His wealth has fluctuated alongside movements in SpaceX and Tesla shares, with gains and losses in the two companies significantly influencing his estimated net worth.
Musk first crossed the trillion-dollar threshold following SpaceX’s listing on the Nasdaq stock exchange on June 12, according to the report. However, he lost that status within days as shares of SpaceX and Tesla declined.
His fortune again exceeded $1 trillion on October 5, supported by rising share prices in both companies. The latest decline in SpaceX shares has once again pushed his estimated wealth below that level.
SpaceX shares experience sharp fluctuations
SpaceX’s stock performance has been marked by significant movements since its market debut in June.
The shares opened at $135 and climbed above $200 during the first few days of trading. However, they fell to $108 in early August, wiping out substantial market value.
According to the figures cited in the report, the decline around August 5 erased approximately $1.2 trillion in market capitalisation. SpaceX shares subsequently recovered, trading above $160 last week.
The recovery added more than $750 billion in market capitalisation from the August 5 low, with the stock gaining nearly 50% over a two-month period.
Despite that recovery, the latest decline highlights the volatility surrounding the company’s shares and the effect of market movements on Musk’s estimated wealth.
Tesla and SpaceX remain key to Musk’s fortune
Musk’s wealth is closely tied to his interests in major technology and industrial businesses, particularly SpaceX and Tesla.
SpaceX, which operates in the aerospace and satellite communications sectors, has become a major component of his estimated fortune. Tesla, the electric vehicle manufacturer, also plays an important role in determining his net worth.
The changes in Musk’s estimated wealth over recent months illustrate how fluctuations in the valuation of companies associated with him can move his fortune above or below the trillion-dollar threshold.
Forbes’ net-worth estimates can change with share prices and other valuation adjustments, meaning that such rankings and wealth figures may vary from one trading session to another.
Musk’s political spending draws attention
Musk’s financial activities have also attracted attention in the United States because of his political contributions ahead of the midterm elections.
Reuters and The New York Times have described him as the largest donor to Republicans in the midterm election cycle. According to the figures cited in the report, Musk has spent $276 million since July.
His political spending comes as his business interests and personal wealth remain closely watched amid developments in the technology, automotive and aerospace sectors.
While the latest fall in SpaceX shares has reduced his estimated fortune below $1 trillion, the longer-term movement in his wealth will continue to depend on market valuations and the performance of his major business interests.