Elon Musk Loses $350 Billion as SpaceX Slump Deepens

Elon Musk’s fortune has fallen by more than $350 billion as shares of SpaceX continued their sharp decline for a third consecutive trading session on Monday. Despite the steep drop, Musk remains the world’s first trillionaire, with an estimated net worth of just under $1.1 trillion.

SpaceX stock tumbled 16.4% on Monday, slipping below $155 per share and falling under its debut closing price of $160. The decline extended losses from the company’s recent peak of $225.64 reached on June 16, leaving the stock down more than 31% from that high. The selloff has reduced Musk’s estimated wealth from a record $1.45 trillion to approximately $1.1 trillion, with Monday’s market move alone erasing more than $152 billion from his net worth.

Musk’s wealth remains closely tied to his holdings in SpaceX. He controls roughly 38% of the company through ownership of about 4.8 billion shares and an additional 350 million stock options carrying an exercise price of $8.40 per share.

Investor sentiment weakened further after MSCI reportedly assigned SpaceX a CCC rating, the lowest level on its seven-tier sustainability scale. The index provider said the company was trailing industry peers due to its exposure to and handling of significant environmental, social and governance risks.

Adding to market attention, SpaceX revealed plans to issue bonds to refinance a short-term loan while avoiding dilution for existing shareholders. The announcement came as the company’s market value continued to shrink following its strong post-IPO rally.

Since reaching a peak valuation of approximately $2.99 trillion on June 16, SpaceX has lost about $928 billion in market capitalization, falling to around $2 trillion by Monday. The company briefly surpassed Amazon and Microsoft to become the world’s fourth-largest company by market value but has since dropped to seventh place, behind TSMC, which is valued at roughly $2.42 trillion.

In another development, CNBC reported that SpaceX has entered a computing agreement with AI startup Reflection AI that could be worth $6.3 billion. Under the reported terms, Reflection AI will pay SpaceX $150 million per month from July 1, 2026, through 2029 and gain access to Nvidia GB300 chips for training and operating advanced artificial intelligence models.

SpaceX shares had previously surged 67% above their $135 IPO price amid strong investor demand. However, enthusiasm has cooled following concerns about valuation and governance. Last week, the company announced a $60 billion all-stock acquisition of AI coding startup Cursor, a deal that diluted SpaceX’s $1.77 trillion IPO valuation by roughly 3.4%.

Research firm Morningstar, which has maintained a bearish outlook on the stock, described the acquisition as a significant dilution event and reduced its fair value estimate for SpaceX shares to $62 from $63. Some analysts have also raised concerns about the company’s governance structure, citing Musk’s dominant voting control. Others, including Swissquote analyst Ipek Ozkardeskaya, have suggested that speculative buying behavior could be contributing to the stock’s volatility, comparing investor enthusiasm to characteristics often associated with meme stocks.