SpaceX Stock Slump Wipes Out Nearly $700 Billion From Elon Musk’s Paper Wealth

Elon Musk has seen one of the steepest declines in paper wealth ever recorded as shares of SpaceX (NASDAQ: SPCX) continue to slide following the company's blockbuster public debut.

After raising $75 billion in its June 12, 2026 IPO, SpaceX stock jumped from its $135 offering price to a record $225.64 just four days later. However, the rally quickly reversed. By Friday, SPCX had fallen to $112.96, down 4.47% on the day, 16% below its IPO price, and nearly 50% off its all-time high.

The decline has dramatically reduced Musk's estimated net worth. Bloomberg Billionaires Index data shows his fortune shrinking from roughly $1.45 trillion on June 16 to about $738 billion by July 23, representing a paper loss of approximately $650 billion to $700 billion in just five weeks.

Despite the market selloff, Musk maintains firm control over SpaceX. SEC filings show his trusts own a 42% economic stake, while the company's dual-class share structure gives him roughly 82% of the voting power, allowing him to retain operational control even as public investors absorb the stock's volatility.

Bearish investors have benefited from the decline. Short sellers have reportedly accumulated around $15.5 billion in paper profits, with short interest climbing to nearly one-third of the public float despite Musk's previous warnings against betting against the company.

The selloff accelerated after two major setbacks. On July 16, a Starship launch was scrubbed because of an engine issue, pushing SpaceX shares lower. Days later, Tesla (NASDAQ: TSLA) reported disappointing second-quarter earnings, missing profit expectations as operating income plunged nearly 57% year over year and free cash flow turned negative. Tesla shares tumbled 14.52%, further reducing Musk's wealth.

Musk has also fueled speculation about a possible Tesla-SpaceX merger, citing growing collaboration between the companies, including Starlink integration and shared AI chip development. He suggested the probability of such a deal is around 80%, while noting any transaction would require proper corporate approvals.

Investors are now focused on several key catalysts, including SpaceX's first quarterly earnings report on August 4, the August 6 lockup expiration that could release up to 911.5 million insider shares for sale, and the next Starship test flight, all of which could significantly influence the stock's direction.