Shares of the major aerospace and technology firm SpaceX (SPCX) have dropped sharply following the release of initial public earnings data.
Elon Musk’s net worth plunged from $783.3 billion to $696.1 billion, marking an 11.01% decline and wiping out $87.2 billion in the tech titan’s overall wealth as SPCX tumbled, reports Benzinga.
Musk became the world’s first trillionaire after SpaceX’s blockbuster public listing on June 12th, when it opened at $150 after an initial public offering price of $135. On the same day, SPCX climbed to as high as $160.95 before hitting a closing peak of $201.80 on June 16th.
By August 5th, shares of SPCX were in free fall, dropping to $108.29, marking a nosedive of more than 40% from its June peak and leaving Musk’s overall wealth down more than 30% to track the stock’s post-IPO decline.
The sell-off came after SpaceX released its first quarterly report as a public company. According to the report, the firm’s Q2 revenue climbed 92% to $7.8 billion, yet the company recorded a $541 million net loss alongside $18.4 billion in capital outlays.
Of that spending, $15.8 billion targeted artificial-intelligence infrastructure, which weighed on investor sentiment toward near-term profitability.
Market observers note that elevated investment demands in growth areas continue to pressure valuations even as top-line expansion remains robust. As of Wednesday’s close, SPCX was trading at $108.27.
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