Elon Musk’s fortune has taken a massive hit following a sharp selloff in SpaceX shares, with the world’s richest person losing an estimated $350 billion in net worth over the past week.
Despite the staggering decline, Musk remains a trillionaire, with his fortune still estimated at just under $1.1 trillion.
Wiped out all gains
The selloff extended into a third consecutive day on Monday, with SpaceX shares plunging 16.4% to below $155, falling beneath the stock’s debut closing price of $160.
The decline means SpaceX shares have now fallen more than 31% since reaching a high of $225.64 on 16 June, wiping out all gains made after the company’s record-breaking stock market debut.
According to Forbes estimates, Monday’s decline alone erased more than $152 billion from Musk’s personal wealth.
The billionaire entrepreneur owns approximately 38% of SpaceX through a combination of 4.8 billion shares and an additional 350 million stock options, making the company’s valuation a major contributor to his net worth.
Nearly $1 trillion wiped off SpaceX value
The recent selloff has dramatically reduced SpaceX’s market capitalisation.
At its peak on 16 June, the aerospace giant was valued at roughly $2.99 trillion, briefly surpassing technology heavyweights such as Amazon and Microsoft to become the world’s fourth-largest listed company.
Since then, approximately $928 billion in market value has been erased, reducing SpaceX’s valuation to around $2 trillion.
The decline has seen the company slip to seventh place globally, behind Taiwanese semiconductor giant TSMC.
ESG concerns add pressure
Investor sentiment was further dented after global index provider MSCI reportedly assigned SpaceX a CCC rating, the lowest ranking on its seven-tier environmental, social and governance (ESG) scale.
MSCI reportedly cited concerns around the company’s exposure to and management of significant ESG risks, concluding that SpaceX was lagging behind industry peers in several key areas.
The rating added to growing concerns among some analysts regarding governance structures at the company, particularly Musk’s dominant voting control.
Bond issue announced
Adding to investor caution, SpaceX announced plans to issue bonds in order to refinance a short-term loan facility.
The company said the move would allow it to raise additional capital without diluting existing shareholders through the issuance of new shares.
While debt financing is common among large corporations, some investors viewed the announcement as another factor contributing to short-term uncertainty surrounding the stock.
Major AI deal offers positive outlook
Despite the recent market turbulence, SpaceX continues to expand its business operations.
According to reports, the company has signed a computing agreement with AI startup Reflection AI that could be worth as much as $6.3 billion.
Under the arrangement, Reflection AI is expected to pay approximately $150 million per month between July 2026 and 2029 for access to advanced computing infrastructure powered by Nvidia GB300 chips.
The agreement highlights SpaceX’s ambitions to diversify beyond its traditional aerospace and satellite operations into the rapidly growing artificial intelligence sector.
From market darling to correction
SpaceX’s spectacular rise after listing was fuelled by unprecedented investor demand, with shares surging as much as 67% above the IPO price of $135 within days of trading.
However, concerns about valuation, governance and recent corporate transactions have prompted some analysts to question whether the stock’s early gains were sustainable.
The company’s recent announcement that it would acquire AI coding startup Cursor in an all-stock transaction valued at $60 billion also attracted criticism from some market observers, who argued the deal would dilute shareholder value.
For now, investors appear to be reassessing the stock after its meteoric rise, although even after the recent correction, SpaceX remains one of the world’s most valuable companies and the cornerstone of Musk’s trillion-dollar fortune.
