Elon Musk Loses $600 Billion as SpaceX, Tesla Stocks Plunge

Elon Musk’s net worth is in free fall this month as the value of its biggest assets, including SpaceX and Tesla, continues falling amid major challenges. His net worth stands at $719 billion, making him richer than Larry Page and Sergey Brin’s, combined.

Elon Musk Net Worth Has Plunged

Musk, who became the world’s first trillionaire, has lost over $600 billion in the past few weeks. According to Bloomberg, his wealth has dropped from over $1.32 trillion in June this year.

Musk’s losses are substantial as they are bigger than the GDPs of many countries. Also, if these losses were publicly traded companies, they would rank as the 25th biggest company in the world.

Still, despite the losses, Musk is a very rich individual, with a net worth of over $719 billion. This wealth comes from his stakes in companies like SpaceX, Tesla, Neuralink, and The Boring Company. Musk owns a 13% stake in Tesla, which jumps to 20% when factoring in its exercisable stock options. He also owns between 38% and 42% stake in SpaceX.

Tesla Stock Plunged After Earnings

Elon Musk’s net worth accelerated after Tesla stock plunged last week after its financial results. It plunged to a low of $306 last week, with the market capitalization falling from $1.7 trillion to $1.1 trillion today.

Tesla shares plunged last week after it released its financial results, which were relatively mixed. These results showed that its revenue jumped in the second quarter of this year as its deliveries soared.

However, its gross margins dropped, a sign that the company was reducing its vehicle prices to reach more customers. Also, its free cash flow turned negative as the company boosted its investments in the data center industry. Elon Musk does not expect the company to have a positive FCF this year.

Yahoo Finance data shows that analysts expect that its revenue growth will decelerate in the current quarter. The estimate is that its third-quarter revenue will drop by 2.40% to $27.42 billion.

Technicals point to more TSLA stock downtrend. It has already plunged below the important support level of $337, its lowest level in April this year. Worse, it has now formed a death cross pattern as the 50-day and 200-day moving averages crossed each other. This pattern points to more downside over time, which will drag Musk’s wealth down.

SpaceX Stock Has Plunged as the Post IPO Surge Momentum Faded

SPCX stock, on the other hand, has plunged as the momentum it experienced in June faded. This is a situation that has happened in most of the other recent IPOs, including companies like Circle Internet Group, Figma, and Bullish.

There are concerns about the many businesses in its portfolio. A major one is xAI, which owns X and Grok, the AI platform competing with ChatGPT and Claude. xAI continues burning billions of dollars, and data shows that its market share is not growing. It has a 5% market share.

Most recently, SpaceX’s rocket aborted its launch after facing a mechanical failure. This is happening at a time when its launch business is facing substantial competition from the likes of Rocket Lab. Last week, Rocket Lab won a $266 million contract from the Pentagon, while Jeff Bezos Blue Origin has recently crossed the $100 billion valuation mark.

SPCX stock has also dropped amid valuation concerns among investors, with some warning that the $30 trillion total addressable market (TAM) is significantly higher than reality.

Looking ahead, the SpaceX stock will react to its earnings, which are expected to come in earlier next month. The stock may drop sharply as other large companies have done in the past few days.

Musk’s estimated wealth remains highly sensitive to Tesla and SpaceX because much of his fortune is concentrated in those companies. Tesla’s rising capital spending and SpaceX’s post-IPO volatility have reduced the value of his holdings from their June peak. However, daily billionaire rankings remain estimates and can change substantially with stock prices, private-company valuations and option calculations.

This article is for informational purposes only and does not constitute financial or investment advice. Billionaire wealth estimates, stock prices and technical indicators can change rapidly and do not guarantee future performance.