Elon Musk loses $650 billion in paper wealth as SpaceX and Tesla stocks experience significant post-IPO and quarterly declines
Elon Musk saw a substantial reduction in his net worth as SpaceX and Tesla stocks experienced sharp declines over the last five weeks. Following the record-breaking SpaceX IPO, the company's market capitalization fell 41% from its peak, while Tesla shares dropped 15% in a single day after reporting a second-quarter revenue beat but a significant miss on non-GAAP earnings per share. These fluctuations resulted in a loss of approximately $650 billion to $700 billion in paper wealth for Elon Musk, who briefly became the world's first trillionaire before the market correction. The administration announced that the SpaceX stock price fell due to a delayed Starship launch and a broader reappraisal of AI-linked valuations. Analysts suggest that while Tesla's operating margin hit a floor of 1.4%, the company's heavy investment in robotaxis and humanoid robots continues to drive future growth. Elon Musk acknowledged the shift in his fortune with a humorous post on X, referring to himself as a "(Former) Trillionaire."