Musk’s Fortune Falls $48.5B as SpaceX Stock Drops 40% From Peak

Elon Musk experienced a net worth reduction exceeding $48.5 billion on Friday, with his total wealth sliding to $865 billion according to Bloomberg figures. This drop stems from SpaceX shares falling to $134.72—roughly 40% beneath their post-IPO peak—amid widespread anxiety over an artificial intelligence bubble during a broader U.S. market selloff. Current observers will find SpaceX trading at its lowest point since August, occurring just weeks after Musk regained his status as a trillionaire.

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

SpaceX made its Nasdaq debut under the symbol SPCX on June 12, 2026, launching at $135 per share before climbing to a record $225.64 four days later. Although shares recovered to $176.56 last month, a fresh downward trend soon followed. This rapid turnaround explains why the contraction in Musk’s wealth feels particularly severe.

At present, trading data puts SpaceX shares just beneath their initial public offering price. The equity shed $9.17, or 6.37%, on Friday alone, bringing its one-month loss to 9.73%. Because the majority of Musk’s net worth is tied up in SpaceX, his personal wealth trajectory closely mirrors this stock performance.

The $40 Billion Lease That Spooked The Market

On October 26, SpaceX revealed a lease agreement valued at roughly $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 period beginning in 2027. Musk’s wealth contraction accelerated in the days immediately following this announcement.

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 projected that capital expenditures for the fourth quarter will range between $35 billion and $40 billion, up from $19.6 billion in the third quarter.

AI Revenue Beats Starlink, But The Bill Keeps Growing

Financial results released on October 20 appeared robust on paper, showing a 161% increase in total revenue to $14.58 billion. Artificial intelligence revenue hit $7.56 billion, surpassing Starlink’s $5.24 billion. However, the AI division also incurred $16.4 billion in expenses—outpacing the space and connectivity segments combined—which serves as a primary driver behind Musk’s declining fortune.

Musk has previously issued warnings regarding smaller cloud providers, sharing the following 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 CoreWeave, Nebius, and IREN have each surrendered more than half of their value from all-time highs, compounding sector-wide anxiety over the AI market and weighing on Musk’s net worth.

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Tesla Merger Talk Softens Musk’s Fortune Decline

Tesla provided some financial cushion for Musk, closing the week at $400 after he confirmed he is evaluating a potential merger between the two entities. Dan Ives of Yorkville Ives estimates the probability of an agreement occurring by the end of 2027 at 80% to 90%. Because Musk retains a roughly 49% stake in SpaceX, every downward movement in SpaceX shares impacts his overall net worth far more than his approximately 12% share in Tesla can mitigate.

For the time being, the trajectory of Musk’s wealth depends on whether the broader artificial intelligence trade can establish a solid floor. Further pullbacks in SpaceX stock would drag his net worth down further, while persistent AI bubble concerns will likely determine whether current share levels represent a definitive bottom once the company’s multi-billion dollar spending initiatives begin yielding tangible results.