Musk Faces Major Setbacks as Tesla and Spacex Value Plummets

WHO:

CNBC - Elon Musk is the founder of SpaceX and CEO of Tesla.

CNBC - Analysts at Argus Research provided insights on Tesla's financial situation.

WHAT:

Yahoo Finance UK - SpaceX shares have dropped to $112.96, down 4.47% on the session, and are now about 16% below their $135 initial public offering price.

Yahoo Finance - Tesla's second-quarter adjusted earnings were reported at $0.33 per share, which is about a third below the $0.50 consensus estimate.

Yahoo Finance - Tesla's operating income fell 56.9% from a year earlier to $398 million.

Yahoo Finance - SpaceX short sellers have accumulated about $15.5 billion in paper gains as bearish positions expanded.

Yahoo Finance - Musk's net worth plummeted from a June 16 peak of $1.45 trillion to approximately $738 billion by the July 23 close, resulting in a staggering $650 to $700 billion wiped out in just five weeks.

CNBC - Tesla shares plunged 18% during the week to close at $313.03, marking their worst weekly slump since 2022.

Yahoo Finance - Tesla's second-quarter revenue was reported at $28.2 billion, exceeding the $26.2 billion consensus estimate.

Yahoo Finance - Tesla's net margin fell to 3.7%, less than half its three-year average of 8.7%.

Yahoo Finance - Tesla's automotive margin slipped from 19.2% to 16.3% in a single quarter.

Yahoo Finance - Tesla's management guides capital outlay above $25 billion for the year, with more to come over the next two to three years.

Yahoo Finance - Tesla has arranged debt facilities of up to $30 billion to fund its capital spending.

Yahoo Finance UK - SpaceX shares were trading at $112.96, down 4.47% on the session, and resting roughly 50% below its peak.

Yahoo Finance UK - SpaceX's stock has dropped roughly 50% from its June 16 peak of $225.64.

Yahoo Finance UK - Musk's net worth plummeted from a June 16 peak of $1.45 trillion to approximately $738 billion by the July 23 close, resulting in a staggering $650 to $700 billion wiped out in just five weeks.

Yahoo Finance - SpaceX's first public earnings report is scheduled for August 4.

Yahoo Finance - SpaceX shares were trading at $112.96, down 4.47% on the session, and resting roughly 50% below its peak.

Yahoo Finance - Tesla's stock is now down 30% for the year, making it the worst performer among tech's mega-caps.

Yahoo Finance - Tesla's operating income fell 56.9% from a year earlier to $398 million.

Yahoo Finance - Tesla's second-quarter adjusted earnings were reported at $0.33 per share, below the $0.50 consensus estimate.

Yahoo Finance - Tesla shares fell 14.5% after the earnings report, cutting an estimated $18.6 billion from Musk's wealth in one session.

Yahoo Finance - SpaceX short sellers have accumulated about $15.5 billion in paper gains as bearish positions expanded.

Yahoo Finance - Investors will now watch SpaceX's first public earnings report, the expiration of insider lockup restrictions, and the next Starship test flight.

Yahoo Finance - SpaceX shares were trading near $113, about 16% below their $135 initial public offering price.

Yahoo Finance - Musk's economic stake in SpaceX is 42%, but he retains about 82% of the voting power due to the dual-class share structure.

Yahoo Finance - SpaceX short sellers have accumulated about $15.5 billion in paper gains as bearish positions expanded.

Yahoo Finance - Investors will watch for SpaceX's first public earnings report, scheduled for August 4, and the expiration of insider lockup restrictions.

Yahoo Finance - SpaceX shares were trading at $112.96, down 4.47% on the session, and resting roughly 50% below its peak.

Yahoo Finance - SpaceX's stock dropped 7.2% over five days to close at $115.07, its lowest since the company's record initial public offering last month.

Yahoo Finance - Tesla's stock is now down 30% for the year, making it the worst performer among tech's mega-caps.

Yahoo Finance UK - SpaceX shares were trading at $112.96, down 4.47% on the session, and resting roughly 50% below its peak.

Yahoo Finance UK - Musk's Revocable Trust holds 842.09 million Class A and 663.8 million Class B shares, plus another 7.4 million Class A shares via the EM 2024 GRAT-A trust.

Yahoo Finance UK - Short interest in SpaceX has swollen to roughly a third of the public float.

Yahoo Finance - Tesla's second-quarter adjusted earnings were reported at $0.33 per share, below the $0.50 consensus estimate.

Yahoo Finance - Tesla's operating income fell 56.9% from a year earlier to $398 million.

Yahoo Finance - SpaceX shares were trading near $113, about 16% below their $135 initial public offering price and roughly 50% below the stock's June 16 peak of $225.64.

Yahoo Finance - The decline in Tesla and SpaceX has erased an estimated $650 billion to $700 billion from Elon Musk's paper wealth in roughly five weeks.

Yahoo Finance - Tesla shares fell 14.5% after the earnings report, cutting an estimated $18.6 billion from Musk's wealth in one session.

Yahoo Finance - SpaceX short sellers have accumulated about $15.5 billion in paper gains as bearish positions expanded.

CNBC - Tesla shares plunged 18% during the week to close at $313.03.

CNBC - SpaceX's stock dropped 7.2% over five days to close at $115.07.

CNBC - The declines in both stocks wiped away about $130 billion of Musk's wealth.

CNBC - Tesla's stock is down 30% for the year, making it the worst performer among tech's mega-caps.

CNBC - Musk referred to himself as a "(Former) trillionaire" in a post on X.

WHERE:

CNBC - SpaceX headquarters is located in Hawthorne, California.

WHEN:

Yahoo Finance - Investors will watch for SpaceX's first public earnings report and the expiration of insider lockup restrictions.

CNBC - Tesla reported second-quarter results late Wednesday.

WHY:

CNBC - Tesla's slump was spurred by weaker-than-expected earnings.

CNBC - The company turned cash flow negative due to a surge in spending on projects like robotaxis, humanoid robots, and a giant chip fab.

CNBC - Analysts at Argus Research stated that they expect pressure on free cash flow and delayed earnings growth.

HOW:

The Motley Fool - Musk mentioned that there is "more and more overlap" between Tesla and SpaceX, particularly pointing to Terafab, SpaceX's planned chipmaking venture, which he described as "really going to be a gigantic project."

Yahoo Finance - Musk warned shorts on X that their "survival probability... over time is very low," but bearish bets have accelerated since his remarks.

Yahoo Finance - Analysts at Argus Research stated that they expect pressure on free cash flow and delayed earnings growth, without providing any near-term shareholder return.

Yahoo Finance UK - Musk warned shorts on X that their "survival probability... over time is very low," but bearish bets have accelerated since his remarks.

CNBC - Analysts at Argus Research provided a report indicating the challenges Tesla faces in generating consistent profit growth in the near term.

(UPDATED July 26, 2026 00:13 UTC)

SpaceX shares have dropped to $112.96, marking a decline of 4.47% and placing them about 16% below their initial public offering price of $135. Meanwhile, Tesla reported second-quarter adjusted earnings of $0.33 per share, which is roughly a third below the consensus estimate of $0.50, and their operating income fell 56.9% from a year earlier to $398 million. In a related note, Elon Musk highlighted the increasing overlap between Tesla and SpaceX, particularly with Terafab, a planned chipmaking venture he described as a "gigantic project."

(UPDATED July 25, 2026 22:12 UTC)

Tesla shares experienced a significant drop, plunging 18% during the week to close at $313.03, marking their worst weekly slump since 2022. Despite this downturn, the company reported second-quarter revenue of $28.2 billion, surpassing the consensus estimate of $26.2 billion, although its net margin fell to 3.7%, less than half its three-year average. In a related development, Elon Musk highlighted the increasing overlap between Tesla and SpaceX, particularly with the ambitious Terafab chipmaking venture, which he described as a "gigantic project."

(UPDATED July 25, 2026 20:17 UTC)

SpaceX shares are currently trading at $112.96, reflecting a drop of 4.47% and sitting about 50% lower than their peak. In just five weeks, Musk's net worth has seen a dramatic decline from $1.45 trillion to approximately $738 billion, erasing between $650 to $700 billion. Looking ahead, SpaceX's first public earnings report is set to be released on August 4, and Musk highlighted a significant overlap between Tesla and SpaceX, particularly with the upcoming Terafab chipmaking venture.

(UPDATED July 25, 2026 19:18 UTC)

SpaceX shares are currently trading at $112.96, down 4.47% and sitting about 50% below their peak, while Tesla's stock has dropped 30% this year, making it the worst performer among major tech companies. Tesla's operating income has plummeted by 56.9% from a year earlier to $398 million, and their second-quarter adjusted earnings came in at $0.33 per share, falling short of the $0.50 consensus estimate, which led to a 14.5% drop in shares and a loss of approximately $18.6 billion from Musk's wealth in just one session. Investors are now looking ahead to SpaceX's first public earnings report, the expiration of insider lockup restrictions, and the next Starship test flight, as Musk notes increasing overlap between Tesla and SpaceX, particularly with the ambitious Terafab chipmaking venture.

(UPDATED July 25, 2026 16:17 UTC)

SpaceX shares are currently trading around $113, which is about 16% lower than their initial public offering price of $135. Elon Musk holds a 42% economic stake in SpaceX but maintains approximately 82% of the voting power due to the company's dual-class share structure, while short sellers have gained about $15.5 billion as bearish positions have increased. Investors are eagerly anticipating SpaceX's first public earnings report on August 4, along with the expiration of insider lockup restrictions, as Musk has cautioned short sellers about their low survival probability over time.

(UPDATED July 25, 2026 14:25 UTC)

SpaceX shares are currently trading at $112.96, down 4.47% on the session and about 50% below their peak, while the stock has dropped 7.2% over the past five days to close at $115.07, marking its lowest point since the company's record initial public offering last month. Meanwhile, Elon Musk's net worth has seen a dramatic decline, plummeting from a peak of $1.45 trillion on June 16 to approximately $738 billion by July 23, which means he has lost between $650 and $700 billion in just five weeks. Analysts at Argus Research have noted that they anticipate ongoing pressure on free cash flow and delayed earnings growth, without any near-term returns for shareholders.

(UPDATED July 25, 2026 13:22 UTC)

Elon Musk's net worth has dropped dramatically from a peak of $1.45 trillion on June 16 to about $738 billion by July 23, wiping out an astonishing $650 to $700 billion in just five weeks. Meanwhile, SpaceX shares are trading at $112.96, down 4.47% for the session and approximately 50% below their peak, with short interest in the company now making up roughly a third of the public float. Despite Musk's warning to shorts on X that their "survival probability... over time is very low," bearish bets have continued to increase since his comments.

(UPDATED July 25, 2026 10:27 UTC)

Tesla's second-quarter adjusted earnings came in at $0.33 per share, falling short of the $0.50 consensus estimate, while the company's operating income plummeted by nearly 57% from a year earlier to $398 million. Following the disappointing earnings report, Tesla shares dropped 14.5%, resulting in a loss of approximately $18.6 billion from Elon Musk's wealth in just one day, and overall, the decline in Tesla and SpaceX has wiped out an estimated $650 billion to $700 billion from his paper fortune in the past five weeks. Investors are now looking ahead to SpaceX's first public earnings report and the expiration of insider lockup restrictions, which are set to take place on August 1, 2026.

(UPDATED July 25, 2026 01:26 UTC)

Tesla shares took a significant hit, plunging 18% during the week to close at $313.03, while SpaceX's stock dropped 7.2% to finish at $115.07, resulting in a staggering loss of about $130 billion in Elon Musk's wealth. The decline in Tesla's stock, which is down 30% for the year, is attributed to weaker-than-expected earnings and a negative cash flow due to increased spending on ambitious projects like robotaxis and humanoid robots. Analysts at Argus Research have expressed concerns about ongoing pressure on free cash flow and delayed earnings growth, highlighting the challenges Tesla faces in achieving consistent profit growth in the near term.