Musk loses over $600B as Tesla, SpaceX shares plunge

Elon Musk's net worth has been cut nearly in half since mid-June, falling from a peak of roughly $1.33 trillion to approximately $684 billion as of August 1, according to Bloomberg's Billionaires Index. The decline of more than $646 billion represents the largest loss of personal wealth in history and was driven by sharp drops in both SpaceX and Tesla ↗ 0.32% shares.brusselstimes+1

A Brief Reign as Trillionaire

Musk briefly became the world's first trillionaire following SpaceX's blockbuster initial public offering in June, which saw shares price at $135 and surge as high as $225.64. But the stock has since fallen roughly 50% from that peak, trading around $108 to $112 in late July. The reversal prompted Musk to post on X on July 24, referring to himself as a "(Former) Trillionaire".ibtimes+1

SpaceX's decline has been attributed to several factors, including delayed Starship test launches, a $60 billion all-stock acquisition of AI coding company Cursor that diluted shareholders, and what analysts describe as a valuation leaving little margin for error. Tesla shares have compounded the losses, falling roughly 37% from their 2026 high after the company reported second-quarter operating profit of $400 million — well below Wall Street expectations of $1.72 billion.benzinga+1

Broader Billionaire Losses

The turbulence extended beyond Musk. The combined wealth of the world's ten richest people fell by $368 billion in July, according to Forbes, though Musk alone accounted for $363 billion of that total. Despite the losses, Musk remains the world's wealthiest person by a wide margin, with a fortune still exceeding the combined net worth of second-ranked Larry Page and third-ranked Jeff Bezos.forbes+2

Merger Rumors Add Uncertainty

Adding to market unease, reports emerged that Musk is considering merging SpaceX with Tesla, which would create one of the largest conglomerates in the United States. According to The Wall Street Journal News Corp ↘ 3.58%, Musk is weighing the sale or spinoff of Tesla's Chinese operations to make such a deal possible. Investors have generally punished conglomerate structures in recent years, favoring companies that separate their business lines. SpaceX is set to report earnings on Wednesday, August 5, a result that could further test the stock's trajectory.benzinga

Fortune reported that Musk's wealth has now returned to approximately where it stood before the SpaceX IPO, underscoring how quickly fortunes tied to volatile technology stocks can shift.fortune