Musk's Net Worth Dips Below $900B as SpaceX Stock Nears IPO Price

Elon Musk's fortune has retreated below the $900 billion mark, driven primarily by a sustained decline in the share price of SpaceX. Earlier this week, SpaceX stock fell approximately 3.8%, trading near $140 per share—edging close to its $135 IPO price.

Wealth Erosion and the Top Spot

This market correction wiped out nearly $38 billion from Musk's net worth in a short period. Concurrently, shares of Tesla, another major component of his wealth, also dropped around 3%. Despite the significant contraction, Musk's estimated net worth of about $879.3 billion keeps him firmly ahead of other billionaires like Google co-founders Larry Page and Sergey Brin.

His wealth is largely tied to his holdings of roughly 4.8 billion SpaceX shares and options, plus approximately 700 million Tesla shares.

From Peak to Trough: SpaceX's Volatile Ride

SpaceX's stock has experienced dramatic swings. Just last month, the shares hit an all-time high above $225, catapulting Musk's total fortune to a peak of around $1.45 trillion.

Since that high, however, the trend has reversed sharply. The stock has now fallen more than 38% from its peak, erasing a substantial portion of its market value. This volatility has sparked debate about its short-term valuation.

Wall Street's View: Bullish Despite the Slump

In contrast to the weak price action, many Wall Street firms maintain a long-term optimistic stance on SpaceX. According to data from FactSet, the average analyst price target remains as high as $236, far above the current trading level.

  • The Ultra-Bullish Case: Raymond James has set a staggering $800 price target, implying a future market capitalization exceeding $10 trillion. Their analyst argues SpaceX is "building the foundational platform for the next generation of industrial capacity."
  • The Bullish Camp: Arete Research has a $401 target, Morgan Stanley sees $300, and Goldman Sachs targets $205.

These divergent targets reflect different models for assessing SpaceX's long-term potential, but a common thread is the belief in the transformative power of its core businesses—Starlink and reusable rocket technology. To some analysts, the current pullback may present a long-term entry point.