Musk Loses $48.5B Following 40% Drop in SpaceX Value
Elon Musk lost over $48.5 billion after SpaceX stock dropped 40% from its post-IPO peak to $134.72, driven by AI bubble anxieties, a massive $40 billion chip lease agreement, and broader market sell-offs.
Elon Musk experienced a net worth reduction exceeding $48.5 billion on Friday, bringing his total down to $865 billion based on Bloomberg statistics. This drop stemmed from a SpaceX share price decrease to $134.72—roughly 40% beneath its post-IPO peak—amidst mounting AI bubble anxieties and a broader United States market sell-off. Anyone reviewing SpaceX stock today will observe it at its minimum point since August, occurring just weeks following Musk’s return to trillionaire status.
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SpaceX Stock Decline Raises AI Bubble Fears as Musk’s Wealth Falls
SpaceX began trading on the Nasdaq under the SPCX ticker on June 12, 2026, at an initial price of $135 per share, subsequently reaching an all-time high of $225.64 four days later. Shares briefly rebounded to $176.56 last month before another descent commenced. This rapid fluctuation accounts for the severity of Musk’s wealth reduction.
Source: Yahoo Finance
Presently, current evaluations of SpaceX stock show the equity trading slightly beneath its IPO valuation. The stock shed $9.17, amounting to 6.37%, on Friday alone, pushing its monthly losses to 9.73%. Musk’s financial decline tracks this performance closely, given that the bulk of his capital is tied up in SpaceX.
The $40 Billion Lease That Spooked The Market
On October 26, SpaceX revealed an agreement valued at approximately $40 billion with an enterprise managed by Apollo Global Management. Under the arrangement, this entity will acquire Nvidia’s upcoming Vera Rubin chips and lease them back to SpaceX over a five-year timeframe commencing in 2027. Musk’s wealth drop accelerated following the announcement of this transaction.
Chief Financial Officer Bret Johnsen commented:
“This lease diversifies our funding sources and addresses a notable portion of the funding required to deliver on our growth plans.”
Furthermore, he projected capital expenditures for the fourth quarter to range between $35 billion and $40 billion, marking an increase from the $19.6 billion recorded in the third quarter.
AI Revenue Beats Starlink, But The Bill Keeps Growing
Financial results released on October 20 appeared robust initially. Aggregate revenue climbed 161% to reach $14.58 billion, with AI-related revenue hitting $7.56 billion to outperform Starlink’s $5.24 billion. Concurrently, the artificial intelligence division expended $16.4 billion—surpassing the combined spending of the space and connectivity divisions—with these high expenses serving as a primary driver of Musk’s financial downturn.
Musk himself addressed vulnerabilities among smaller cloud computing entities, sharing the following perspective on X:
“As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers.”
He continued:
“That means the 200+ neoclods are going to see guppy-level death and consolidation. Some will make it through, but not many.”
Industry counterparts including CoreWeave, Nebius, and IREN have each surrendered greater than 50% of their value from historic peaks, contributing to sector-wide distress that fuels both AI bubble concerns and Musk’s personal wealth contraction.
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Tesla Merger Talk Softens Musk’s Fortune Decline
Conversely, Tesla provided some financial cushioning by closing the week at $400 after Musk acknowledged he is evaluating a potential consolidation of the two enterprises. Dan Ives from Yorkville Ives estimates the probability of such an agreement concluding by the close of 2027 at 80% to 90%. Because Musk retains roughly a 49% ownership stake in SpaceX, each downward movement in SpaceX stock affects Elon Musk’s net worth much more severely than his approximate 12% stake in Tesla can mitigate.
At present, the trajectory of Musk’s net worth hinges on whether the artificial intelligence market establishes a stable base. Subsequent declines in SpaceX stock would pull Elon Musk’s net worth downward once more, while broader AI bubble worries will likely determine if current SpaceX valuations represent a definitive floor once the $35 billion to $40 billion investment strategy begins yielding tangible results.
Frequently Asked Questions
Why did Elon Musk’s net worth drop significantly?
Musk’s net worth fell due to a 40% drop in SpaceX stock from its post-IPO peak, which led to a single-day wealth loss of more than $48.5 billion amid wider AI bubble fears and a US market sell-off.
How much is SpaceX stock currently trading for?
SpaceX stock dropped to $134.72 per share, falling just under its initial IPO price of $135 and marking its lowest level since August.
What caused the recent market spook regarding SpaceX?
SpaceX disclosed a roughly $40 billion lease agreement with an Apollo Global Management-run entity to buy and lease Nvidia Vera Rubin chips, alongside fourth-quarter capital spending projections of $35 billion to $40 billion.
How do Tesla shares affect Musk’s overall wealth during this downturn?
Tesla shares provided some relief by closing the week at $400 amid talks of a potential merger between Tesla and SpaceX, though Musk’s 49% stake in SpaceX means its drop impacts his net worth far more than his 12% Tesla stake can offset.
