Tesla owner Elon Musk suffers major setback, loses $600 billion

Six weeks ago, Elon Musk was the richest person in history. On June 16, just three days after SpaceX's initial public offering on June 12, 2026, its market value reached a record high of $2.64 trillion, with Musk's wealth peaking at around $1.45 trillion. According to US media, Tesla owner Elon Musk has suffered a major financial setback, with a record $712 billion decline in his wealth. On June 16, Musk's wealth was around $1.45 trillion, and by July 23, according to the Bloomberg Billionaires Index, it had dropped to around $738 billion. This means that in just five weeks, his wealth decreased by around $712 billion.

According to the report, within just five weeks, Elon Musk's wealth, estimated to be between $650 billion and $700 billion, evaporated. US media reports that the significant decline in his wealth is due to the sharp drop in SpaceX and Tesla shares. However, he still remains the richest person on the planet by a wide margin, with a lead of around $650 billion over the second-richest person.

SpaceX's entry into the stock market was the largest IPO in history, and the market welcomed it accordingly, with shares selling far above the initial offering price and the company's valuation surpassing $2.6 trillion in just a few days. However, from its peak on June 16 to the close of business on July 23, the shares have fallen by 41.41%, from $201.80 to $118.24. The current market value is $895.24 billion, with over $1 trillion in market value lost from its peak.

According to US media, July has been a tough month for SpaceX, and Elon Musk was a trillionaire for only a few weeks. The reasons for this decline have emerged one after another, with the delay in the Starship launch on July 16 affecting the stock in after-hours trading. A broader reevaluation of companies linked to artificial intelligence also impacted the market. By July 21, SpaceX had briefly fallen below $120 per share and had dropped below its IPO price after seven consecutive sessions of decline. Meanwhile, short sellers have made a profit of $15.5 billion from this decline.

The decline in Tesla shares has also affected Musk's wealth. On July 22, Tesla reported second-quarter revenue of $28.24 billion, which was higher than expected. The company also delivered a record 480,126 vehicles. However, the company's profit was far below expectations. Earnings per share were $0.33, compared to an estimate of $0.5367. Operating income also decreased by 56.88% to $398 million. Tesla's operating expenses increased by 47% to $4.35 billion, largely due to rising expenses on artificial intelligence, robotics, Optimus, and Dojo.

On July 23, Tesla shares fell by 14.52% to close at $319.69. The shares have declined by 16.23% over the past month and by 28.91% so far this year. Tesla's current market value is $1.20 trillion.