NEW YORK, United States — Elon Musk’s net worth has plunged by more than $50 billion following a sharp decline in SpaceX shares, marking the latest blow to the world’s richest person as investor confidence in the space exploration company continues to wane.
Elon Musk, the chief executive officer of Tesla and SpaceX, is at the centre of the financial downturn. SpaceX, the private aerospace manufacturer and space transport services company, has been a cornerstone of Musk’s vast fortune since its record-breaking initial public offering in June 2026.
SpaceX shares have tumbled again, erasing over $50 billion from Musk’s net worth. This follows a previous decline last week when a nearly 30 percent drop in SpaceX’s share price wiped out approximately $350 billion from his fortune, reducing his net worth from $1.45 trillion to just under $1.1 trillion. The latest decline deepens the selloff that has plagued the company since its IPO.
The latest drop follows a sustained decline in SpaceX shares over recent trading sessions. The selloff began shortly after the company’s IPO, which had initially sent shares soaring by as much as 67 percent during the first three days of trading, valuing the company at more than $1.8 trillion.
The financial impact is being felt across global markets, particularly in the technology and aerospace sectors, where SpaceX has been a dominant player. The decline has also affected Musk’s personal fortune, which is largely tied to his 38 percent stake in SpaceX, in addition to his 11 percent holding in Tesla.
The selloff has been driven by growing investor concern over SpaceX’s lofty post-IPO valuation and questions about the company’s governance structure. Sentiment took a further hit after MSCI reportedly assigned SpaceX a CCC rating, the lowest on its seven-tier sustainability scale. The company also unveiled plans for its first investment-grade bond offering aimed at raising at least $20 billion to support its artificial intelligence expansion, which failed to reassure investors.
Analysts have pointed to governance concerns, particularly Musk’s outsized voting control relative to other shareholders, as a key factor in the selloff. The broader technology sector has also experienced a downturn, with the Nasdaq 100 on track to erase more than $1 trillion in market value.
The decline affects Musk directly, as his personal wealth is tied to SpaceX’s performance. It also impacts shareholders and investors who had bought into the company’s post-IPO promise. Despite the dramatic decline, Musk remains the world’s richest person, with his fortune still significantly exceeding that of the runner-up, Larry Page.
The selloff follows a period of extreme volatility for SpaceX shares, which had surged to a peak of $2.9 trillion in market value before declining for three consecutive trading sessions, wiping out roughly $928 billion in market value to about $2 trillion. The Monday drop alone wiped out more than $152 billion from Musk’s net worth.
SpaceX continues to trade above its IPO price, and analysts note that market fluctuations are typical, if SpaceX bounces back, so will Musk’s net worth. For now, the volatility underscores the risks associated with high-profile IPOs and the concentration of wealth in a single company.
