The article reports that Elon Musk's wealth has dropped by $650 billion to $700 billion due to significant selloffs in Tesla and SpaceX stocks over five weeks. Tesla's shares fell 14.5% following disappointing quarterly earnings, while SpaceX shares are trading approximately 16% below their IPO price. This decline affected Musk's economic interest in SpaceX, although he retains substantial voting power. Short sellers in SpaceX profit by about $15.5 billion as the company prepares for its first public earnings report and other upcoming milestones.

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Tesla, SpaceX Selloff Cuts Elon Musk's Paper Wealth by Up to $700 Billion

Faizan Farooque

Fri, July 24, 2026 at 2:22 PM EDT1 min read

This article first appeared on GuruFocus.

Tesla ( TSLA, Financials), the electric vehicle and energy company, and publicly traded SpaceX have erased an estimated $650 billion to $700 billion from Elon Musk's paper wealth in roughly five weeks.

SpaceX shares were trading near $113 Friday, about 16% below their $135 initial public offering price and roughly 50% below the stock's June 16 peak of $225.64.

The decline reduced the value of Musk's 42% economic stake in the aerospace company, though its dual-class share structure leaves him with about 82% of the voting power.

Tesla added to the losses after reporting second-quarter adjusted earnings of $0.33 per share, below the $0.50 consensus estimate. Operating income fell 56.9% from a year earlier to $398 million, while free cash flow turned negative as capital spending rose sharply.

Tesla shares fell 14.5% after the report, cutting an estimated $18.6 billion from Musk's wealth in one session.

SpaceX short sellers have accumulated about $15.5 billion in paper gains as bearish positions expanded.

Investors will now watch SpaceX's first public earnings report, the expiration of insider lockup restrictions and the next Starship test flight.