Musk’s Wealth Drops $48.5B Following 40% SpaceX Decline

Elon Musk experienced a net worth reduction exceeding $48.5 billion on Friday, as his total wealth slid to $865 billion according to Bloomberg figures. This drop stems from a retreat in SpaceX stock to $134.72—about 40% below its post-IPO peak—amid broader US market selloffs driven by growing AI bubble concerns. Observers reviewing SpaceX stock today will find valuations at their lowest points since August, arriving merely weeks after Musk regained his trillionaire status.

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SpaceX Stock Decline Raises AI Bubble Fears as Musk’s Wealth Falls

SpaceX debuted on the Nasdaq under the ticker SPCX on June 12, 2026, at an initial price of $135 per share, subsequently surging to a record peak of $225.64 just four days later. Shares climbed back toward $176.56 last month before the latest downward slide began. This rapid fluctuation highlights the intensity behind the recent decrease in Musk’s overall fortune.

Presently, market monitoring indicates that SpaceX stock trades just below its IPO threshold. The equity dropped $9.17, or 6.37%, during Friday’s session alone, marking a 9.73% decline over the trailing month. Because a significant portion of Musk’s wealth is tied up in SpaceX, his personal net worth closely mirrors this trajectory.

The $40 Billion Lease That Spooked The Market

On October 26, SpaceX revealed an approximate $40 billion leasing agreement with an organization managed by Apollo Global Management. Under the arrangement, this entity will purchase Nvidia’s upcoming Vera Rubin microchips and lease them back to SpaceX across a roughly five-year span beginning in 2027. Musk’s wealth reduction 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.”

Johnsen also forecasted capital expenditures for the fourth quarter to hit between $35 billion and $40 billion, escalating 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 advanced 161% to land at $14.58 billion, with artificial intelligence operations generating $7.56 billion to outperform Starlink’s $5.24 billion. Nonetheless, the AI division incurred $16.4 billion in expenses—surpassing the outlays of the space and connectivity segments combined—which heavily contributed to the decline in Musk’s fortune.

Musk himself has previously cautioned investors regarding smaller cloud infrastructure competitors, sharing his 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 further noted:

“That means the 200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through, but not many.”

Industry peers including CoreWeave, Nebius, and IREN have each shed over half of their peak valuations, reinforcing broader sector anxieties regarding an AI market bubble and impacting Musk’s net worth.

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Tesla Merger Talk Softens Musk’s Fortune Decline

Tesla provided a degree of financial cushion for Musk, concluding the week at $400 following his confirmation that he is evaluating a potential merger between the two entities. Dan Ives from Yorkville Ives estimates the probability of a finalized agreement by the close of 2027 at 80% to 90%. Because Musk retains roughly a 49% stake in SpaceX, any downturn in SpaceX stock heavily outweighs the mitigating effect of his roughly 12% ownership in Tesla.

At present, the trajectory of Musk’s net worth hinges on whether broader artificial intelligence investments stabilize. Additional downward pressure on SpaceX stock would pull his total wealth lower, while prevailing market sentiment regarding the AI bubble will likely determine if current valuations represent a definitive market floor once the $35 billion to $40 billion capital expenditure strategy begins producing tangible outcomes.

Frequently Asked Questions

What caused Elon Musk’s recent net worth decline?

Elon Musk’s fortune dropped by more than $48.5 billion due to a significant decline in SpaceX stock, which fell about 40% from its post-IPO peak to $134.72 amid wider AI bubble fears and a US market selloff.

When did SpaceX go public and what was its IPO price?

SpaceX was listed on the Nasdaq under the ticker SPCX on June 12, 2026, at an initial price of $135 per share.

What was the $40 billion lease agreement involving SpaceX?

SpaceX disclosed a roughly $40 billion lease agreement with an entity managed by Apollo Global Management. This arrangement involves purchasing Nvidia’s Vera Rubin chips and leasing them back to SpaceX over a five-year period starting in 2027.

How do SpaceX’s AI revenues compare to Starlink?

In the October 20 financial results, SpaceX’s AI revenue reached $7.56 billion, surpassing Starlink’s revenue of $5.24 billion.

Could a potential Tesla merger impact Musk’s wealth?

Yes, talk of a potential merger between SpaceX and Tesla—which closed the week at $400—has provided some financial cushion, though SpaceX stock drops still impact Musk’s net worth much more severely due to his larger 49% stake in SpaceX compared to his 12% Tesla stake.