“(Former) trillionaire,” Elon Musk tweeted on July 24, marking a swift reversal from the brief moment he became the world’s first trillionaire. His net worth, which soared past $1.3 trillion after SpaceX’s highly anticipated public listing, plunged by nearly $600 billion as the stock price tumbled from its peak. This dramatic drop wasn't due to cash losses but because the bulk of Musk’s wealth is tied up in SpaceX shares, whose value fluctuated wildly in the weeks following the IPO.
The SpaceX shares began trading on June 12 at $150, well above the $135 IPO price, and surged to a high of $225.64 just four days later. This spike pushed SpaceX’s market capitalization close to $3 trillion, which greatly inflated Musk’s paper net worth. However, the trading float was exceptionally small, with only 4.9% of the company’s 13.2 billion shares available to public investors a stark contrast to the roughly 80% typical in large public companies. That scarcity amplified volatility, causing the price to plunge to around $113 by late July, about 16% below the IPO price.
The steep decline sharply cut Musk’s estimated wealth to roughly $725 billion, wiping out his trillionaire status in just a few weeks. Meanwhile, short sellers capitalized on this volatility. According to Ortex Technologies, bearish traders realized around $15.5 billion in unrealized gains, with short positions covering nearly 56% of the public float approximately 360 million shares. The minimal share availability meant that market moves were exaggerated, benefiting those betting against the stock.
SpaceX’s IPO raised $85.7 billion, surpassing the 2019 Saudi Aramco debut, but the tiny public float created a roller-coaster for investors and Musk alike. His fluctuating net worth highlights the fragility of wealth tied mainly to illiquid assets rather than cash. For a billionaire whose fortune depends heavily on volatile shares, the trillionaire milestone may prove fleeting rather than permanent.
