Elon Musk’s Fortune Nearly Halves as $646B Evaporates in Six Weeks
Elon Musk’s personal fortune has contracted by nearly half in just six weeks, with approximately $646 billion evaporating from his wealth since its peak in mid-June, according to the Bloomberg Billionaires Index. The dramatic decline, driven primarily by the collapse of SpaceX’s stock following its record-breaking IPO, has reduced Musk’s estimated net worth from roughly $1,330 billion to $684 billion.
Despite the staggering paper losses, Musk remains the world’s richest person by a considerable margin, with a fortune that still exceeds the combined wealth of Larry Page, co-founder of Google, and Jeff Bezos, founder of Amazon, who rank second and third respectively.
The Rise and Fall of a Trillionaire
Musk’s extraordinary wealth trajectory reached its apex on June 12, 2026, when SpaceX went public in the largest stock market debut in history. The IPO, valued at nearly $1.8 trillion, briefly crowned Musk as the world’s first US dollar trillionaire. His net worth reached an intraday peak of $1.45 trillion in the week following the listing, according to Wikipedia.
However, the euphoria proved short-lived. SpaceX shares, which opened at $150 and peaked at $225.64 within four trading sessions, began a steady decline that would erase hundreds of billions in market value. By late July, the stock had fallen to around $113, roughly 16% below its IPO price, with the company’s market value declining to approximately $1.5 trillion - nearly half its June peak.
SpaceX Stock Collapse Drives the Loss
The primary driver of Musk’s wealth decline is his substantial ownership stake in SpaceX. Musk holds approximately 40% of the company’s capital, making his fortune extraordinarily sensitive to fluctuations in the stock price. As RTL.be reported, each significant movement in SpaceX’s share price directly impacts the estimation of his net worth.
Tesla’s decline has also contributed to the wealth reduction, with the electric vehicle maker’s shares retreating significantly from their highs.
It is important to note that this is largely a paper loss - not hundreds of billions of dollars actually leaving Musk’s accounts. The decline reflects the falling market value of his holdings rather than realized losses.
Short Sellers and Market Dynamics
The SpaceX stock collapse attracted significant short-selling pressure. According to IBTimes UK, S3 Partners counted 219.3 million shares sold short as of July 29, representing about 34% of the tradable float and worth approximately $24.6 billion. The short position grew almost tenfold in six weeks, from 23.3 million shares in mid-June.
Musk, characteristically, has not taken the bearish sentiment lying down. On August 4, he taunted short sellers on X, writing: “I try to warn them, but they just double down.” The post came as SpaceX shares jumped 9.4% to $125.33 following the company’s first earnings report as a public company.
First Earnings Report Delivers Mixed Signals
SpaceX’s inaugural quarterly earnings report on August 4 delivered better-than-expected revenue but also raised concerns about the company’s heavy spending. The company reported $7.81 billion in revenue, a 92% jump from the same period last year, beating analysts’ expectations of $6.93 billion. The net loss narrowed to $541 million from roughly $1 billion a year earlier, according to The Guardian.
However, capital expenditure of $18.4 billion - about $5 billion above forecasts - sent the stock down as much as 8% in extended trading. Kathleen Brooks, research director at XTB, noted: “This report comes at an important time, the share price crashed and burned in recent weeks, it is down 50% from its peak and is trading below its IPO price.”
Thomas Monteiro, a senior analyst at Investing.com, acknowledged that Musk and his team “delivered a few positives” but warned: “In a market already wary of heavy capex and negative free cash flow amid a shifting rates cycle, that profile may not sit well for the longer term.”
Lockup Expiry Looms Large
Adding to the pressure, the first major lockup expiry occurred on August 6, 2026, when 911.5 million insider-held shares became eligible for sale. As IBTimes UK reported, this more than doubles the tradable pool from roughly 640 million shares - about 5% of the company - to approximately 12%. Additional lock-up periods are scheduled to expire in September, November, and December.
Analysts expect many employees and early investors to sell some holdings, potentially adding further downward pressure on the stock. The unusual structure of the IPO - with only about 4.9% of the company’s 13.2 billion shares initially entering the market - amplified both the initial surge and the subsequent collapse.
Broader Market Implications
The SpaceX collapse has sent ripples through the broader IPO market. As LewRockwell/The Unz Review noted, OpenAI has postponed its IPO to 2027, and Anthropic may follow suit. The NASDAQ, which changed its rules to allow SpaceX fast entry into major market indexes, has also suffered consequences of the collapse.
Ron Unz, publisher of The American Conservative, described the situation starkly: “A trillion dollars of market value has now evaporated in just the last few weeks, thus currently ranking SpaceX as the most disastrous IPO of all time.”
What’s Next
Despite the dramatic decline, Musk’s position atop the global wealth rankings remains secure. His fortune of $684 billion still dwarfs that of his nearest competitors, and his ownership stakes in both SpaceX and Tesla continue to represent enormous value.
The key question going forward is whether SpaceX’s stock can stabilize as the lockup shares enter the market and the company continues its ambitious - and expensive - expansion plans. With additional lockup expiries scheduled through the end of 2026, the coming months will test both investor confidence in SpaceX and the resilience of Musk’s paper fortune.
For now, Musk remains the wealthiest person on Earth by a wide margin - even as his trillionaire status has proven to be one of the shortest-lived milestones in financial history.