Tech Stock Selloff Costs Elon Musk 27.4 Billion Euros

A sharp selloff in US technology stocks has wiped an estimated 27.4 billion euros from Elon Musk's wealth, as declining share prices hit major semiconductor manufacturers and companies linked to artificial intelligence infrastructure following Republican victories in the US midterm elections.

According to a report by en.ara.cat published on November 5, the billionaire's estimated losses reached approximately 30.2 billion dollars. The declines affected shares in Tesla and SpaceX, two companies in which Musk holds substantial ownership stakes.

The Philadelphia Stock Exchange Semiconductor Index, which tracks 30 major semiconductor companies listed in the United States, dropped more than 10% during Thursday's trading session. Most of its components recorded double-digit or nearly double-digit declines.

Nvidia shares fell 8.99%, while ASML dropped 8.65% and Broadcom declined 9.3%. Intel lost more than 10%, while Qualcomm shares fell over 13%. AMD and Micron each recorded declines exceeding 17%.

Asian semiconductor manufacturers also experienced significant losses in US-listed shares. South Korea's SK Hynix fell 13.8%, while Taiwan Semiconductor Manufacturing Company (TSMC) declined 10.4%.

Other companies connected to artificial intelligence infrastructure and data storage also suffered substantial setbacks. Cloud computing company Nebius fell as much as 19.8% during the early trading hours, while Seagate declined 15.9% and Western Digital lost 16.7%. SanDisk shares dropped nearly 20%.

Musk's business interests were also affected by the market downturn. SpaceX shares fell 11%, while Tesla shares declined more than 10%, according to the report.

Musk owns a 40.5% stake in SpaceX and 13% of Tesla. Those holdings contributed to the estimated 30.2 billion dollars in losses, equivalent to approximately 27.4 billion euros.

The financial setback comes on top of Musk's political spending during the US election campaign. The billionaire contributed more than 470 million dollars, equivalent to approximately 418 million euros, to the Republican Party and its political candidates.

Approximately half of those contributions supported Republican candidates for senator and governor in Texas, Ken Paxton and Greg Abbott. Both candidates lost their respective races to Democratic opponents James Talarico and Gina Hinojosa.