Elon Musk has reportedly seen his history-making fortune take a massive hit this week. Just days after becoming the world's first trillionaire, the tech mogul’s net worth has plummeted.
According to the Telegraph, a brutal sell-off in SpaceX shares has wiped hundreds of billions of dollars from his personal wealth.
The reversal follows the biggest Initial Public Offering (IPO) in history. SpaceX went public earlier this month with a valuation of nearly $1.77 trillion. At its peak on 16 June, shares hit $225.64, pushing Musk’s estimated net worth to an all-time high of $1.45 trillion.
A dramatic market reversal
The celebration was short-lived. SpaceX stocks have now fallen more than 31% from that peak. The decline unfolded across three consecutive days, ending in a 16.4% plunge on Monday. This was the worst single day the newly listed stock has seen since it debuted on the Nasdaq.
On Monday alone, more than $152 billion was erased from Musk’s net worth. In pre-market trading on Tuesday, shares dropped as low as $147. This took the stock below its original opening price of $150.
"Investors were wary of the substantial cash required to fund technological ambitions." — Jose Torres, Senior Economist at Interactive Brokers.
Why did the sell-off happened
Several factors triggered the sudden exit of investors. Market confidence was shaken when SpaceX announced it would issue bonds to raise at least $20 billion. The company intends to use this to refinance a short-term loan and fund its expansion into artificial intelligence.
Despite holding over $100 billion in cash, the move to borrow more money raised eyebrows. Investors began to question the long-term capital requirements for Musk’s ambitions.
Additional pressure came from environmental and social ratings. MSCI gave SpaceX a CCC rating, the lowest possible score on its sustainability scale. The firm stated that SpaceX was lagging on significant environmental, social and governance risks.
Financial losses and future outlook
While the IPO turned thousands of SpaceX employees into millionaires, the company’s underlying financials remain in the red. SpaceX reported a net loss of $4.9 billion for 2025.
It lost a further $4.28 billion in the first quarter of 2026. These losses reflect heavy spending on the Starship development programme and new AI infrastructure.
“Tomorrow SpaceX will reportedly launch the biggest IPO in history... and what makes that even more unsettling is this man... is also one of the weirdest people we've ever seen on this planet.” — Jimmy Kimmel.
The answer depends on which tracker you follow. Forbes estimates that despite the losses, Musk’s net worth still sits at approximately $1.1 trillion. However, market analysts suggest that the recent dip below the listing price has effectively reversed his trillionaire status in real-time.
Regardless of the exact figure, the volatility highlights the risks of a fortune tied so closely to a single, newly public company. Musk remains the world's richest man, but his hold on the 13-figure milestone is now under significant pressure.
