Elon Musk’s net worth has fallen by an estimated $350 billion following a sharp decline in SpaceX shares less than two weeks after the aerospace company’s debut on the New York Stock Exchange.
The decline comes amid a broader sell-off in major technology stocks that has rattled markets and erased hundreds of billions of dollars in market value across the sector.
Musk became the world’s first trillionaire earlier this month when SpaceX began trading publicly.
The company’s shares surged during their first day on the exchange, rising from $150 to $161 and pushing SpaceX’s market value above $2.1 trillion.
The rally elevated Musk’s estimated net worth to approximately $1.1 trillion, according to Forbes.
Since then, however, SpaceX shares have retreated significantly.
As trading opened Tuesday, the stock was trading at $151.90, down more than 16% from recent highs.
The decline has reduced SpaceX’s market value by more than $600 billion over the previous three trading sessions.
Because Musk owns an estimated 38% stake in the company, including billions of shares and stock options, the drop has had a significant impact on his personal fortune.
Forbes estimated that more than $350 billion has been wiped from Musk’s net worth during the recent pullback.
The decline has occurred alongside a broader correction in technology stocks.
Companies including Nvidia, Tesla and Oracle have also experienced significant losses as investors reassess spending on artificial intelligence infrastructure and related projects.
Market analysts said concerns about rising debt levels and aggressive AI-related investment have contributed to the sell-off.
SpaceX recently announced plans to raise additional capital through a bond offering.
The company said part of the proceeds would be used to support artificial intelligence development initiatives.
Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, said the financing plan has renewed concerns about technology companies relying on debt to fund large-scale AI investments.
“SpaceX jumping on the bond train to fund excessive AI and infrastructure spending revives earlier concerns that Big Tech may be spending too much on AI infrastructure and increasingly financing that spending through debt,” Ozkardeskaya said.
Investors have increasingly questioned whether the massive sums being committed to AI projects will generate returns sufficient to justify current valuations.
Nigel Green, chief executive of deVere Group, said the technology sector had become heavily concentrated as investors poured money into a relatively small number of companies.
“The AI trade became one of the most crowded trades in global markets,” Green said.
“When everybody owns the same stocks, the exit door becomes very small very quickly,” he added.
Despite the recent decline, SpaceX remains one of the largest publicly traded companies in the United States.
The company continues to play a dominant role in commercial spaceflight, satellite communications and launch services, per Sky News.
Analysts noted that while the recent losses are substantial, SpaceX’s market value remains well above pre-listing expectations.
Investors will be watching closely to see whether the company’s planned bond offering and future AI initiatives help stabilize sentiment in the weeks ahead.
