What happened
Elon Musk’s SpaceX has hemorrhaged more than $1.2 trillion in market capital since its record-setting IPO in June, as the market scrutinizes the viability of the company’s Starship rocket. The spacecraft, which SpaceX describes as a “fully reusable transportation system,” has been “marred by reliability concerns and repeated explosions,” The Washington Post said. Following another sharp drop in SpaceX shares Monday, CEO Musk’s net worth has fallen from an estimated mid-June peak of $1.45 trillion to below $700 billion.
Who said what
SpaceX conducted a “near-perfect” Starship flight test on Friday, MarketWatch said, but it “wasn’t enough to reverse the stock’s steady decline.” The downside of being publicly traded is that “everything will be evaluated and information transmitted through market prices,” Motley Fool senior investment analyst David Meier told the Post. Musk last week posted a tongue-in-cheek acknowledgement on X of his changing fortunes, calling himself a “(Former) Trillionaire.” Even with “just” $700 billion, he remains the wealthiest person in the world “several times over,” Intelligencer said.
What next?
Investors will be watching closely on August 4, when SpaceX releases its first earnings report since its IPO.