Musk Wealth Drops $48.5B as SpaceX Value Falls 40%

Elon Musk’s net worth slid to $865 billion, bringing his total fortune reduction to more than $48.5 billion on Friday, according to Bloomberg data. The drop stemmed from SpaceX shares falling to $134.72—about 40% below their post-IPO peak—amid a broader US market selloff driven by spreading fears of an artificial intelligence bubble. Anyone checking SpaceX stock today will find it trading at its lowest mark since August, arriving 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 ticker SPCX on June 12, 2026, at an initial price of $135 per share, before surging to a record $225.64 four days later. Although shares recovered to $176.56 last month, another steep slide quickly followed. That rapid round trip helps explain why the contraction in Musk’s net worth feels so severe.

At present, a quick review of SpaceX stock today reveals that shares are sitting just below their IPO price. The equity shed $9.17, or 6.37%, on Friday alone, pushing it down 9.73% over the trailing month. Because the majority of Musk’s wealth is tied up in SpaceX, his personal fortune tracks closely with that downward trajectory.

The $40 Billion Lease That Spooked The Market

On Oct. 26, SpaceX revealed a lease agreement valued at approximately $40 billion with a corporate entity managed by Apollo Global Management. Under the arrangement, that entity will purchase Nvidia’s upcoming Vera Rubin chips and lease them back to SpaceX across a five-year period beginning in 2027. The decline in Musk’s wealth accelerated in the days following this announcement.

Chief Financial Officer Bret Johnsen remarked:

“This lease diversifies our funding sources and addresses a notable portion of the funding required to deliver on our growth plans.”

He also projected fourth-quarter capital expenditures to land between $35 billion and $40 billion, marking an increase from the $19.6 billion spent in the third quarter.

AI Revenue Beats Starlink, But The Bill Keeps Growing

Financial figures released on Oct. 20 appeared robust initially, showing total revenue climbing 161% to $14.58 billion. Artificial intelligence revenue hit $7.56 billion, surpassing Starlink’s $5.24 billion contribution. However, the AI division also accumulated $16.4 billion in expenses—outpacing the space and connectivity segments combined—which serves as a major driver behind the drop in Musk’s fortune.

Musk himself has issued warnings regarding smaller cloud service providers, sharing the following 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 surrendered more than half their market value from their all-time highs, with that sector-wide distress fueling both broader AI bubble anxieties and the reduction in Musk’s net worth.

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Tesla Merger Talk Softens Musk’s Fortune Decline

Tesla provided some financial cushion for Musk, wrapping up the week at $400 after he verified that he is evaluating a potential merger between the two corporations. Dan Ives of Yorkville Ives estimates the probability of such an agreement occurring by the end of 2027 at 80% to 90%. Because Musk retains roughly a 49% stake in SpaceX, any downward movement in SpaceX stock impacts his total wealth far more intensely than his roughly 12% holding in Tesla can mitigate.

At present, the trajectory of Musk’s net worth relies on whether the broader artificial intelligence market sector establishes a durable price floor. Any subsequent pullback in SpaceX shares would drive his wealth down further, while persistent AI bubble concerns will likely determine whether the current valuation of SpaceX stock represents a true market bottom once the company’s $35 billion to $40 billion spending roadmap begins yielding measurable returns.