The earnings of the world’s richest man, Elon Musk, have suffered a major setback. SpaceX’s share price continues to fall; Shares fell to their lowest level ever on Wednesday. In fact, just 24 hours after its inclusion in the Nasdaq-100 index, the company’s shares faced heavy selling pressure. During Wednesday’s trading session, shares fell below their IPO opening price.
**Shares fell below IPO price**
SpaceX shares fell to $145.20 on Wednesday. For information, let us tell you that the opening price of the company’s IPO was fixed at $150. However, there was a slight recovery during early trading on Thursday and shares are now trading around $150. Investors expected that SpaceX’s shares would strengthen by joining Nasdaq-100, but the result was exactly the opposite. Shares have fallen more than 10% in the past five days and are down more than 35% from their all-time high in June.
Market experts have been continuously raising questions over the huge gap between the company’s valuation and its actual profits. Currently, the market valuation of SpaceX is around $1.95 trillion, while its profit at this level is negligible. According to the data, despite earning more than $18.5 billion in revenue last year, SpaceX suffered a huge net loss of nearly $5 billion.
The special thing is that the fall in SpaceX shares happened on the same day when Blue Origin, the space company of Amazon’s Jeff Bezos, announced plans to raise funds from the market. Blue Origin has taken steps towards raising funds from external investors for the first time. The company is in the process of raising $10 billion at a valuation of $130 billion.
**Huge decline in Elon Musk’s net worth**
Meanwhile, due to the fall in SpaceX shares, Elon Musk’s net worth has also declined significantly. According to Bloomberg Billionaires Index, Musk’s wealth has fallen to $932 billion. His wealth declined by nearly $62.7 billion on Thursday alone. It is noteworthy that after the listing of SpaceX, Musk became a trillionaire – that is, his total wealth exceeded one trillion dollars. The reason for this decline in SpaceX’s valuation is not just internal reasons; Turbulence in Nasdaq and global markets is also a major reason for this. Due to increasing tension between America and Iran, the prices of crude oil have increased, which has had a bad effect on the American stock market.
However, despite this decline, many market analysts remain optimistic about SpaceX. He believes the company’s recently launched new AI models and expansion of services like Starlink could put SpaceX back in a strong position in the long run.