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Musk's Net Worth Plummets as SpaceX Stock Crashes
18 Jul
Summary
- SpaceX shares dropped over 5% after its IPO.
- Elon Musk's net worth decreased by AUD $1 trillion.
- Company faces concerns over share unlocks and cash burn.
Elon Musk's net worth has seen a substantial reduction of nearly AUD $1 trillion due to recent pressures on SpaceX. Shares of the aerospace company fell over 5% on Friday, trading at $124. This marks a 45% decrease from its June high of $226, wiping approximately USD $700 billion (AUD $1 trillion) off its market capitalization.
Musk, whose fortune is heavily tied to SpaceX and Tesla equity, experienced a personal hit of USD $600 billion (AUD $859 billion). This decline follows a period where SpaceX shares, offered publicly at $135 just a month prior, surged due to limited supply, briefly making Musk the world's first trillionaire with a net worth of USD $1.4 trillion.
Despite losing his trillionaire status, Musk remains the world's wealthiest individual, with his fortune now around USD $800 billion (AUD $1.1 trillion). This recent sell-off occurred amidst broader market weakness, with the S&P 500 also experiencing a decline, particularly in the semiconductor and AI sectors.
Specific pressures on SpaceX include potential supply increases as scheduled unlocks allow early investors and insiders to sell millions of shares, using recent buyers as "exit liquidity." While Musk's 42% stake is locked until mid-2027, the exit of thousands of employees and institutional holders starting in August could continue to impact the stock price.
Further financial strain arises as SpaceX is pre-profit and is reportedly bleeding cash. Despite a profitable Starlink unit, the company posted a $4.9 billion net loss for fiscal year 2025 and accelerating losses in the first quarter of 2026. These losses stem from its merger with AI firm xAI and significant capital expenditures on its Starship rocket and orbital AI data centers.
Valuation for SpaceX, much like Tesla, relies on the promise of future cash flows rather than current profitability. However, Wall Street analysts maintain a generally bullish outlook, with an average target price of $236 per share, anticipating growth from Starlink, AI compute, and Starship deployment.
