Elon Musk has fallen out of the trillionaire club after a sharp selloff in SpaceX and Tesla shares erased more than $150 billion from his net worth. According to Bloomberg's Billionaires Index, Musk's fortune now stands at $957 billion, down from the historic $1 trillion milestone he crossed earlier this month following SpaceX’s blockbuster IPO.
The decline was driven by a broad technology stock rout and mounting investor skepticism over massive AI spending. SpaceX, which briefly commanded a valuation of nearly $3 trillion after its June 12 public debut, saw its stock plummet 16% on Monday to end at $156—only slightly above its $135 IPO price and far below the $225 peak reached a week earlier. The drop erased about $1 trillion in market capitalization, with Monday alone wiping out $152 billion from Musk’s wealth.
Compounding the pressure, short sellers have flooded into SpaceX. Ortex Technologies reported that short interest surged from 8% to 13% in a single session, signaling a rapid increase in bearish bets. S3 Partners estimated that roughly 40 million shares are held short, representing 5%–7% of the publicly tradable float. Peter Hillerberg, co-founder of Ortex, called the jump “a clear sign that a growing number of traders are positioning for the price to fall sharply.” Borrowing costs remain relatively low at around 0.60%–1% annually, and share supply is ample, making it easier for short sellers to build positions.
The derivatives market also reflects bearish sentiment: options data suggests a 40% probability of SpaceX shares dropping below $130 by mid-September, with open put options nearly doubling call options in some expiry series. The volatility has intensified debate over SpaceX’s valuation, especially after filings revealed a $4.9 billion loss in 2025 and $12.7 billion in AI capital expenditures. Analysts like Danni Hewson of AJ Bell note that post-IPO turbulence is typical, but for Musk, whose SpaceX stake accounts for nearly 80% of his net worth, the swings are dramatic. Tesla’s 5.8% decline further dented his fortune, with his TSLA holdings valued at $158 billion.
Despite the selloff, Musk remains the world’s richest person by a wide margin—roughly $660 billion ahead of the next individual. However, the combination of a swooning stock, rising short interest, and the approaching lockup period expiry could test investor faith in the rocket-and-AI company.
