Elon Musk Loses Trillionaire Status as Tesla and SpaceX Shares Plunge

The net worth of Elon Musk declined by approximately $130 billion, ending his tenure as the world's first trillionaire after a peak of $1.45 trillion in mid-June. His fortune dropped to an estimated $722.4 billion following simultaneous share price collapses at Tesla Inc. and Space Exploration Technologies Corp.

Tesla Inc. shares plunged up to 18% in one week after the company reported second-quarter earnings of 33 cents per share, missing the 55-cent analyst projection. The company reported negative cash flow attributed to high spending on AI, the Optimus robotics program, and the Terafab chip facility. During a shareholder call, Musk noted the increasing overlap between his companies, specifically regarding the integration of Starlink into Tesla's robotaxis, though he declined to confirm rumors of a merger between the two firms.

SpaceX shares declined 7.2% over the same period, continuing a downward trend since its initial public offering. The company's valuation was further pressured by a failed 13th Starship test flight attempt that was aborted due to engine ignition failures. SpaceX is currently preparing for a subsequent attempt to launch the Starship V3 rocket from its Texas facility following weather-related delays.