Elon Musk Net Worth Plunges $528 Billion as Tesla and SpaceX Stocks Dive

Elon Musk’s net worth is in a free fall as shares of his two publicly traded companies nosedive amid the ongoing volatility on Wall Street. SpaceX stock has plunged to a record low, while Tesla fell to $380 from its all-time high of $500.

Elon Musk Net Worth Nosedives

Musk, the richest person in the world, has lost his trillionaire status as his companies come under pressure. Data compiled by Bloomberg shows that his net worth dropped to $792 billion, much lower than the all-time high of $1.32 trillion. This means that his wealth has tumbled by over $528 billion, a staggering amount.

SpaceX stock has tumbled to $123 from a record high of $225. This retreat happened as the short interest jumped and as a launch failed on Friday. Its valuation has dropped from over $3 trillion to $1.7 trillion today.

Tesla stock has also plunged to $380 as the company faces some major challenges in the electric vehicle industry.

Friday’s stock market retreat that saw the Nasdaq 100 Index drop by over 2% knocked Elon Musk’s wealth by over $40 billion. Other top billionaires lost billions of dollars, with Google’s Larry Page and Sergey Brin losing over $6.1 billion and $5.6 billion, respectively.

SpaceX Stock Has Been in a Freefall

SPCX stock has plunged after the much-anticipated IPO that saw it raise over $85 billion. This decline has coincided with the retreat of other space companies like Rocket Lab, Planet Labs, and Virgin Galactic.

The decline is happening as the hype that existed before the IPO faded. It is common for newly listed companies to plunge shortly after the IPO. This is exactly what happened after the IPOs of top companies like Circle Internet, Figma, and Klarna.

There are also concerns about the company’s valuation and cash burn. For some time, SpaceX’s business was profitable as Starlink gained momentum. This changed after the company merged with xAI, which owns X and Grok.

The merger gave SpaceX one of the top cash burners in the industry. xAI, like other companies like Anthropic and OpenAI, is spending billions of dollars in data centers and R&D.

At the same time, SpaceX’s Starship rocket failed to launch as some of the engines failed to ignite. In a statement, Musk said that the two engines will be replaced, with the tentative launch date being on July 20th.

Looking ahead, the next key catalyst for SPCX’s stock price will be its upcoming financial results, which will provide more color on its business.

On the positive side, newly listed companies often bounce back after the initial plunge. For example, Meta Platforms’ stock initially surged, then plunged, and then embarked on a multi-year rally that made it a trillion-dollar company.

This article is for informational purposes only and does not constitute investment advice. Stock prices can be highly volatile, and forward-looking statements reflect market analysis rather than guaranteed outcomes. Investors should conduct their own research before making investment decisions.

Tesla Stock Dives as Concerns About the Company Jumps

TSLA stock is stuck in a technical bear market after plunging by more than 23% from its year-to-date high. While the company published strong second-quarter deliveries, there are concerns on whether this momentum will continue.

The company is facing some major challenges, key among them being competition. This competition is rising from companies like BYD, Nio, XPeng, and Polestar. Indeed, recent data shows that Chinese EV exports jumped to over 1 million last month.

There are also concerns about Tesla’s valuation, which is one of the biggest, especially for a company that is no longer growing. The company has a forward price-to-earnings ratio of 180, well above those of companies like Nvidia and Micron.

Tesla will publish its earnings later this month, and analysts expect strong growth, driven by strong deliveries. As is often the case, the stock is likely to be highly volatile in the coming weeks.