Key Takeaways:
Elon Musk's net worth dropped below $1 trillion for the first time since SpaceX's IPO, as a broad tech selloff erased more than $600 billion from the rocket company's market value in three sessions.
Elon Musk's net worth fell to $957 billion after SpaceX shares plunged 16 percent and Tesla dropped 5.8 percent, ending the trillionaire status he held for less than two weeks, according to the Bloomberg Billionaires Index.
The selloff erased roughly $240 billion from Musk's wealth in a single day, with SpaceX accounting for the bulk of the damage. The rocket company's stock closed around $156 on Tuesday, down more than 30 percent from an intraday peak of $225 on June 16, though still above its $135 IPO price from June 12. SpaceX has lost more than $600 billion in market value over the past three sessions, dragging its market capitalization below $2 trillion for the first time since its public debut.
The decline was part of a broader technology rout that put the Nasdaq 100 on track to shed more than $1 trillion in market value Tuesday, according to Reuters calculations. The selloff swept across the tech sector, with chipmakers among the hardest hit. Intel fell 6.8 percent, AMD dropped 5.2 percent, and memory-chip makers Micron Technology, SanDisk, and Western Digital declined 8 percent, 9.2 percent, and 7.5 percent, respectively. Six of the seven Magnificent Seven stocks were under pressure, with Alphabet, Amazon, Tesla, and Nvidia each falling between 1 percent and 3 percent.
The selloff was fueled by two converging pressures: growing concern that AI infrastructure spending has outpaced visible returns, and rising expectations that the Federal Reserve will raise borrowing costs by 50 basis points by December, according to CME Group's FedWatch Tool. The U.S. 10-year Treasury yield rose as traders priced in a more hawkish stance under new Fed Chair Kevin Warsh.
SpaceX remains Musk's most valuable asset by a wide margin. His stake in the rocket company was worth $744 billion as of Tuesday, accounting for nearly 80 percent of his net worth, according to Bloomberg. His Tesla holdings, valued at $158 billion, added to the damage as the electric-vehicle maker's stock slid alongside the broader market. SpaceX's S-1 filing ahead of its IPO revealed the company posted a $4.9 billion loss in 2025, with its AI segment alone racking up $12.7 billion in capital expenditures.
Despite the pullback, Musk's fortune has climbed $338 billion in 2026, and his $957 billion net worth still exceeds that of the next-richest person, Google co-founder Larry Page, by roughly $660 billion — a gap equivalent to more than two Jeff Bezoses. The coming expiration of SpaceX's lockup period, when early investors can cash out their stakes, will be a key test for the stock.
This article is for informational purposes only and does not constitute investment advice.
