Musk's Net Worth Down By More Than $600 Billion as SpaceX, Tesla Woes Mount

Elon Musk’s net worth continued falling last week as Tesla (NASDAQ:TSLA) and SpaceX (NASDAQ:SPCX) stocks plunged.

Bloomberg data show that his net worth has plunged from a peak of $1.32 trillion in June to $719 billion now, a drop of about $601 billion over that period. This decline alone exceeds the combined net worths of Larry Page and Sergey Brin.

SpaceX stock has plunged from a record high of $225 to a low of $110. As a result, the market capitalization has plunged from about $3 trillion to $1.53 trillion. This decline aligns with the performance of most recent IPOs, including companies like Circle Internet Group, Klarna, Bullish, and Gemini. 

SpaceX has also plunged amid the rising competition. Just this week, Rocket Lab (NASDAQ:RKLB) announced a $266 million deal with the Pentagon. Rocket Lab is also acquiring Iridium, a move that may see it compete better with Starlink.

The stock has also plunged as investors anticipate the company’s first earnings report since going public. While it has not revealed a release date, the report will likely come out in the coming weeks. These results will likely show increased spending tied to its artificial intelligence business.

Meanwhile, Tesla stock plunged after the company published its second-quarter earnings. While its revenue jumped by double digits, its gross margins narrowed, and its free cash flow turned negative. The company expects to spend $25 billion in capital expenditure this year. 

Tesla and SpaceX are also highly valued companies. Morningstar (NYSE:MORN) recently argued that SpaceX’s real value should be less than $800 billion, citing its revenue and profitability metrics. SpaceX has a forward price-to-sales multiple of 38. 

Tesla, on the other hand, has a forward price-to-earnings ratio of 174, higher than the consumer discretionary sector median of 15. Its multiple is much higher than other faster-growing companies like Micron and Nvidia. 

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