Musk Losing Magic

Quick Read SPCX fell 41% from its post-IPO peak and TSLA dropped 15% in a day, vaporizing $650 billion of Musk's paper wealth in five weeks. SpaceX's looming lockup expiration, larger than the entire IPO float, could flood the market with shares and extend Musk's losses further. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here. Six weeks ago, Elon Musk was the richest person who had ever lived. On June 16, three days after SpaceX (NASDAQ:SPCX) closed its June 12, 2026 initial public offering, SpaceX's market capitalization hit an all-time high of $2.64 trillion, and Musk's paper wealth peaked near $1.45 trillion. By the close on July 23, the Bloomberg Billionaires Index pegged him at roughly $738 billion. Somewhere between $650 billion and $700 billion of paper fortune has vaporized in about five weeks. He is, for the moment, still the wealthiest person on the planet by a wide margin, about $650 billion ahead of the next-richest person. https://www.msn.com/en-us/money/economy/ar-AA28Bu77 The SpaceX Round Trip SpaceX's debut was the largest IPO in history, and the tape rewarded it accordingly: shares traded well above the offering price and pushed the rocket-and-satellite giant past a $2.6 trillion valuation within days. From the June 16 peak to the July 23 close, SPCX has fallen 41.41%, from $201.80 to $118.24. Market cap now sits at $895.24 billion. More than $1 trillion in market value has come off the top. The catalysts arrived in sequence. A delayed Starship launch on July 16 hit the stock in extended trading. Post-IPO enthusiasm faded. A broader reappraisal of AI-linked valuations rolled through the tape. By July 21, SPCX had briefly traded below $120 a share, dipping under its IPO price after seven straight down sessions. Short sellers have booked, according to Reddit chatter cited in retail forums, $15.5 billion in profit on the slide. Tesla's Profit Air Pocket Tesla (NASDAQ:TSLA) provided the second leg of the drawdown. On July 22, after the close, Tesla reported Q2 revenue of $28.24 billion, beating estimates by 7.10%, alongside a record 480,126 deliveries. The problem sat below the top line. Non-GAAP EPS came in at $0.33 against a $0.5367 consensus, a 38.51% miss. Operating income collapsed 56.88% year-over-year to $398 million. Operating margin was 1.4%. Free cash flow swung to negative $1.09 billion as capex jumped 141.81% to $5.79 billion. The blowout in operating expense, up 47% YoY to $4.35 billion, reflects Tesla's AI, robotaxi, Optimus and Dojo spend, plus stock-based compensation tied to Musk's 2025 CEO Performance Award. Shares closed at $319.69 on July 23, off 14.52% on the day, 16.23% over the past month, and 28.91% year to date. Market cap now stands at $1.20 trillion.