Elon Musk loses $650b, 29 times larger than Pakistan’s total reserves
The massive decline has shocked global investors. Although Musk remains the world’s richest person, his estimated wealth has fallen sharply in just over a month. His fortune dropped from around US$1.45 trillion in mid-June to nearly US$738 billion by late July.
The biggest reason behind this decline is the steep fall in the value of SpaceX and Tesla. Both companies have lost significant market value during the same period, reducing Musk’s overall paper wealth.
SpaceX reached a record market value of US$2.64 trillion soon after its historic public listing. However, its shares later fell by more than 41%, bringing the company’s market value down to about US$895.24 billion.
The decline started after a delayed Starship launch disappointed investors. At the same time, excitement after the company’s stock market debut faded, while investors also became more cautious about high-priced AI-related companies.
SpaceX shares even slipped below their IPO price after several consecutive losing sessions. According to discussions on Reddit, some short sellers reportedly earned around US$15.5 billion from the stock’s decline.
Tesla also added pressure to Musk’s fortune despite reporting quarterly revenue of US$28.24 billion and record deliveries of 480,126 vehicles. Investors focused more on weaker profits than on strong sales.
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The company’s adjusted earnings per share came in well below market expectations. Operating income dropped nearly 57% from a year earlier, while free cash flow turned negative as spending on new projects increased sharply.
The size of Musk’s wealth decline becomes even more striking when compared with Pakistan’s foreign exchange reserves. His estimated loss of around US$650 billion is almost 29 times greater than Pakistan’s total liquid foreign reserves.
According to the latest official figures, Pakistan’s total liquid foreign exchange reserves stand at US$22.67 billion. Out of this, the State Bank of Pakistan holds US$17.26 billion, while commercial banks hold about US$5.41 billion.
The central bank’s reserves increased by about US$33 million during the latest reported week. However, the country’s overall foreign reserves remained close to US$22.67 billion.
Musk’s wealth shows how quickly paper fortunes can rise and fall with stock prices. It also highlights the huge difference between the value of global technology companies and the financial reserves of many countries.
