Elon Musk’s net worth has fallen below the one-trillion-dollar mark in just two weeks. The decline was driven by a sharp drop in SpaceX shares, which have lost more than 30% of their value since their mid-June peak.
How the situation unfolded
SpaceX went public on the Nasdaq on June 12, 2026, with an initial offering price of $135 per share. It was the largest initial public offering (IPO) in history, raising approximately $75 billion and giving the company a valuation of $1.77 trillion.
Within four days, the stock price surged to $225.64 per share, pushing SpaceX’s market capitalization above $2.6 trillion. Since Elon Musk owns approximately 42% of the company’s shares, his net worth climbed to a record $1.32 trillion, making him the first person in history to surpass the trillion-dollar mark.
From Euphoria to Reality
However, the market enthusiasm proved short-lived. Concerns about the long-term profitability of artificial intelligence, rising capital expenditures, and persistently high interest rates—which have remained elevated despite expectations of cuts—triggered a broad sell-off in technology stocks.
SpaceX Takes the Biggest Hit
The hardest blow came from SpaceX shares, which fell from their peak of $225.64 to around $156. On June 22 alone, the stock plunged 16%, wiping out an estimated $240 billion from Elon Musk’s net worth. The following day, Tesla shares dropped nearly 6%, further reducing his fortune.
Why the Decline Matters
According to the Bloomberg Billionaires Index, as of June 24, Elon Musk’s net worth was estimated at $957 billion, down $153 billion from its mid-June peak. He remains the richest person in the world, but the composition of his wealth differs significantly from that of other members of the global billionaire elite.
His fortune is unusually concentrated in just two companies. SpaceX accounts for roughly 80% of his total wealth, while most of the remainder is tied to Tesla. Unlike many of the world’s other wealthiest individuals, Musk effectively lacks a broadly diversified investment portfolio.
What’s Behind SpaceX’s Valuation
Before going public, SpaceX acquired xAI, Elon Musk’s artificial intelligence startup, in February 2026. The combined structure brought together rocket manufacturing, the Starlink satellite internet system, the social media platform X, and the AI platform Grok. At the time of the merger, the unified company was valued at approximately $1.25 trillion.
Analysts at Morningstar estimate the fair value of SpaceX shares at around $63, more than twice below the current market price. The research firm CFRA has issued a “sell” recommendation for SpaceX stock and projects a target price of $115. Meanwhile, analysts at NewStreet Research argue that the current valuation could be justified only under a long-term horizon of 20 years or more.
According to BBC
