Elon Musk loses trillionaire status as SpaceX and Tesla shares retreat

Elon Musk has lost his trillionaire status as shares of SpaceX and Tesla plummeted, marking a sharp reversal for the tech magnate just weeks after he became the first person to reach that milestone. According to the Bloomberg Billionaires Index, Musk’s net worth fell to $957 billion by mid-July 2026, down from a peak of $1.32 trillion in late June. The decline followed a broader tech sector selloff, fueled by concerns over artificial intelligence valuations, rising interest rates, and skepticism about SpaceX’s financial fundamentals.

The rapid erosion of Musk’s wealth began after SpaceX’s historic initial public offering (IPO) on June 12, 2026, which valued the company at over $2 trillion. The stock opened at $150 per share and surged to a peak of $225.64 by June 16, propelling Musk’s net worth past $1 trillion. However, by June 23, SpaceX shares had fallen to $156, a drop of more than 30% from their mid-June high. Tesla’s stock also declined, contributing to the loss of Musk’s trillionaire status. The combined effect of these declines erased approximately $300 billion from his fortune, according to multiple reports.

SpaceX’s stock performance has been particularly volatile. The company’s $4.9 billion deficit in 2025 and $12.7 billion in AI-related capital spending, as disclosed in regulatory filings, have raised questions about its long-term profitability. Analysts noted that the stock’s high valuation—trading at 110 times sales—left it vulnerable to market corrections. “For a stock like SpaceX, a lot of decision making might have been emotional and based on the anticipation of huge leaps forward in space exploration, but investing should be something treated with clear eyes and patience,” said Danni Hewson, head of financial analysis at AJ Bell.

Musk’s wealth remains heavily concentrated in his two companies. As of mid-July, his SpaceX stake was valued at $744 billion, accounting for nearly 80% of his total net worth, while his Tesla holdings were worth $158 billion. This concentration makes his fortune uniquely susceptible to market fluctuations. A 6% rebound in SpaceX’s stock would restore his trillionaire status, according to some analysts, though the broader tech sector’s performance remains uncertain.

The decline coincided with a global tech sell-off that affected companies tied to AI and high-growth sectors. Investors grew wary of overvalued tech stocks amid fears of an AI bubble and potential Federal Reserve rate hikes. The selloff was exacerbated by geopolitical tensions, including the Iran war, which disrupted oil markets and added to economic uncertainty. Despite the losses, Musk remains the world’s richest person, with a net worth $660 billion greater than that of Google co-founder Larry Page, the second-richest individual.

Market participants are closely watching the coming weeks for signs of stability. A key development is the expiration of the lockup period for SpaceX’s early investors and employees, which will allow them to sell shares starting in late July. This could further pressure the stock if large-scale selling occurs. However, some analysts argue that the decline reflects a necessary market correction rather than a fundamental shift in SpaceX’s prospects. “Post-IPO volatility is entirely standard for highly valued growth firms,” Hewson said, adding that “the scale of the movement reflects a deeper tug-of-war between hype and reality.”

Musk’s personal wealth has grown at an unprecedented pace, with $338 billion added in 2026 alone. Even after the recent losses, his net worth exceeds the combined fortunes of the second- and third-richest individuals. However, the episode underscores the risks of tying vast wealth to a single company’s stock performance. As one source noted, “The price of oil is $84 per barrel this morning, which is bad enough… but the world still has an unusually large amount of stored oil on hand,” highlighting the complex interplay of factors affecting global markets.

For now, Musk’s status as the world’s richest person remains intact, but his trillionaire title is likely to be temporary. The coming months will determine whether his wealth rebounds or faces further pressure from market dynamics and regulatory scrutiny. As one report put it, “The broader tech sell-off that dragged SpaceX lower is also worth watching from a crypto perspective. Technology stocks and digital assets have shown increasing correlation during risk-off episodes.” Whether this trend continues could shape the future of Musk’s financial empire.