SpaceX Wipes Out $1 Trillion: Musk's Wealth Falls $240 Billion

SpaceX shares dropped around 4% on Tuesday to roughly $149, extending a week-long slump that erased about $1 trillion from the company's peak market value of $2.7 trillion. The decline from the June 16 high of $277 per share now stands at more than 30%.

The company debuted on Nasdaq on June 12 with a valuation of $1.8 trillion. Shares surged more than 50% above the $135 offering price within days, briefly making SpaceX more valuable than Amazon and Microsoft. That rally has since collapsed.

The Post-IPO Reversion

Elon Musk's net worth peaked at $1.32 trillion on June 16, according to Forbes. As of this week, it sits at about $1.1 trillion, a drop of $240 billion. Musk remains the world's first trillionaire. The gap has narrowed.

Retail investors who secured IPO allocations through brokers such as Robinhood, Fidelity and SoFi bought at the $135 IPO price. Many received only a single share or a small allocation. Those positions remain profitable. Investors who bought shares after the IPO at prices above $200 are now underwater.

For IPO allocatees, the cushion is roughly 10%. For anyone who bought above $200, the position is losing money. The next scheduled catalyst is the company's first earnings report as a public company, expected in late July.