Elon Musk's SpaceX loses $600bn in 3 days, nearly triple combined wealth of Ambani and Adani
&imwidth=600&imheight=450&format=webp&quality=medium "Elon Musk's SpaceX loses $600bn in 3 days, nearly triple combined wealth of Ambani and Adani")
File photo of Elon Musk. Photograph: (AFP)
SpaceX rapidly joined the ranks of the world's most valuable corporations as investors sought exposure to Elon Musk's businesses in space exploration, satellite communications and artificial intelligence.
SpaceX has lost over $600 billion in market value in just three trading sessions, days after becoming the world's most valuable company. The loss is being considered nearly three times the combined wealth of India's two richest businessmen, Reliance Industries Chairman Mukesh Ambani, with a net worth of $88.3 billion, and Adani Group Chairman Gautam Adani, worth an estimated at $120 billion, according to the Bloomberg Billionaires Index.
SpaceX shares tumbled 16 per cent on Monday to finish at $154.60, marking their lowest level since the stock market debut of Elon Musk's company. The drop extended a three-day losing streak to 23 per cent, erasing more than $600 billion from the company's market value. Even after the selloff, SpaceX remains among the world's most valuable firms, with a market capitalisation exceeding $2 trillion.
The downturn comes just days after SpaceX's record-breaking IPO, which raised $75 billion and sparked strong investor interest. The company rapidly joined the ranks of the world's most valuable corporations as investors sought exposure to Elon Musk's businesses in space exploration, satellite communications and artificial intelligence.
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Outpacing SpaceX's valuation
Market analysts, however, noted that the stock's rapid ascent made it vulnerable to profit-booking. "Sellers are back in control. Anyone in the world who wanted to buy this has bought it already," Michael O'Rourke, chief market strategist at JonesTrading, told Bloomberg. The comment highlighted concerns that SpaceX's valuation may have outpaced its underlying fundamentals. Another factor weighing on sentiment is SpaceX's aggressive push into artificial intelligence.
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Investor sentiment has also been affected by the company's expanding focus on artificial intelligence. According to Bloomberg, SpaceX is preparing to raise at least $20 billion through its first investment-grade bond offering to help fund its AI initiatives. The company has also entered into a multibillion-dollar deal to provide computing capacity to Reflection AI, an artificial intelligence startup.
While several investors see AI as a major opportunity for growth, others worry that the company is growing too aggressively at a time when expectations are already sky-high. Most of the post-IPO rally was due to retail investors. Reports also indicated that retail investors came up with a net $405 million worth of SpaceX shares during the initial five trading sessions after listing. In addition, SpaceX attracted more retail money than all the Magnificent Seven technology stocks combined during that period.
