SpaceX shares plunge 46% as Musk loses over $600 billion

SpaceX shares have fallen 46% since mid-June, dropping from a peak of $201.80 to roughly $108. The decline followed what the source describes as the largest IPO in history and has cut Elon Musk’s estimated fortune from a peak of $1.33 trillion to about $684 billion, according to Fortune—a reduction of more than $600 billion.

“Money doesn’t matter.”

Musk’s estimated wealth is now below its level before SpaceX went public. The article attributes the loss to the company’s falling market value rather than to a separately disclosed cash loss by Musk.

SpaceX’s first public-company results

The next major test will be SpaceX’s first financial report as a public company, scheduled for next week. The source does not give an exact publication date or provide any financial figures ahead of the report.

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Another potential source of selling pressure is the planned release of up to 911.5 million locked-up shares held by early investors and employees. Those shares are expected to become available next month. If a substantial portion reaches the market, SpaceX’s share price could face additional pressure.

Short interest and the market’s changing expectations

Short sellers have also increased their bets against SpaceX. The volume of short positions has risen to about 219 million shares, nearly 10 times the mid-June level and more than one-third of the company’s publicly traded shares, according to the report.

Tesla’s shares fell 17% after its quarterly results, adding to the pressure around Musk-linked public companies. The broader correction is also being associated with weaker investor appetite for high-risk technology stocks, fading enthusiasm around artificial intelligence and declines among chipmakers.

Bloomberg reported that Morgan Stanley analysts believe the market, at a price near $100 per share, is assigning little value to SpaceX’s AI business. The source does not provide the analysts' valuation methodology or a separate estimate for that division.

SpaceX still leads the space-launch market, while its Starlink satellite network continues to expand. Musk maintains that the company is targeting $1 trillion in annual revenue by 2030. The first public results and the release of previously locked-up shares will put that projection against a much more demanding market test.