SpaceX Stock Crash Wipes $500 Billion From Musk’s Fortune: Can It Rebound?

Mitrade Team
coverImg
Source: DepositPhotos

Elon Musk’s net worth has fallen more than $500 billion from its June peak of $1.45 trillion as SpaceX stock slid nearly 40% from record highs reached days after the company’s Nasdaq debut.

SPCX traded near $142.50 on Tuesday, up 1.74%, after printing an all-time low of $136.78 on Monday. Analysts argue the correction reflects profit-taking rather than any weakening in the company’s fundamentals.

SpaceX (SPCX) Stock PerformanceSpaceX (SPCX) Stock Performance. Source: TradingView

Why SpaceX Stock Fell 38% From Its Peak

SpaceX (SPCX) priced its record June IPO at $135 per share and hit $225.64 on June 16. That day, Forbes reported the company had passed Amazon to become the fifth-largest US company by market value.

The math behind Musk’s loss is mechanical. He holds 4.8 billion shares, about 42% of SpaceX, according to the IPO filing. Each $1 move in SPCX therefore shifts his paper wealth by roughly $4.8 billion.

The $84 slide from peak erased close to $400 billion from that stake alone. Forbes also cut $116 billion of restricted Tesla stock from its estimate, leaving his fortune near $879 billion, still the world’s largest.

The company has shed more than $1 trillion in market value in four weeks, with its capitalization now near $1.86 trillion. The selloff persisted despite the fastest Nasdaq 100 inclusion on record and the firm’s place among the top stocks to watch this quarter.

Geopolitical risk added pressure after Iranian state media designated Musk’s Middle East operations, including Starlink, as potential military targets, CNBC reported.

Can SpaceX Stock Rebound?

Wall Street’s answer is yes, over time. Analysts view the drop as a valuation reset after post-IPO euphoria, not a broken business, so recovery depends on execution.

Evercore ISI initiated coverage on Tuesday with an Outperform rating and a $230 price target, implying roughly 65% upside. The firm’s model projects revenue compounding at 106% annually through 2028, with margins widening from 35% to 69%.

The call sits near the $236 consensus among covering brokers.

“We don’t think there’s a debate that this is an extraordinary company on a real path to reshaping the future of humanity.”

Evercore ISI analyst Kutgun Maral wrote in the initiation note, describing SpaceX as a vertically integrated operation with near-monopoly access to orbit.

Operations have not slowed with the share price. SpaceX launched 27 more Starlink satellites from Vandenberg on Monday. Starship Flight 13 follows on Thursday, carrying 20 functional Starlink V3 satellites for the first time.

That batch adds 60 terabits per second of capacity, over 20 times a single Falcon 9 load, per SpaceNews.

History offers a precedent. Facebook fell more than 50% below its 2012 IPO price within four months. The stock regained that level within 15 months as earnings caught up.

Facebook (META) Sock Performance After 2012 IPO. Source: TradingViewFacebook (META) Sock Performance After 2012 IPO. Source: TradingView

That launch cadence feeds Musk’s long-term valuation claims, while growing demand for tokenized stocks suggests retail appetite for SPCX exposure remains intact.

Still, a premium valuation and execution risk could cap near-term gains.

Thursday’s Starship flight now stands as the first major test of the rebound case. A clean mission would show the company delivering what investors are paying for, while a setback may extend the four-week correction.

mitrade Don't Miss Today's Market    Moves Start trading Forex, Gold & Crypto today    Regulated platform | Fast withdrawals

Disclaimer: The content presented above, whether from a third party or not, is considered as general advice only. CFD trading involves significant risk of loss. Past performance does not guarantee future results. This article serves informational purposes only and does not constitute financial advice. Consider your risk tolerance before trading.

goTop
quote
Related Articles
placeholder
Paramount Courts Elon Musk for Investment as Stock Nears Multi-Year LowsParamount Skydance has discussed bringing Elon Musk in as an equity investor, Semafor reported on Wednesday. Its stock, meanwhile, trades near its lowest levels in years.CEO David Ellison wants wealth
Author  Beincrypto
Sept 24, Thu
Paramount Skydance has discussed bringing Elon Musk in as an equity investor, Semafor reported on Wednesday. Its stock, meanwhile, trades near its lowest levels in years.CEO David Ellison wants wealth
placeholder
Palantir Stock Hits Yearly High at $190. What’s Driving the Price?Palantir Technologies shares climbed above $190 on September 23, 2026. That marked its highest level in nearly a year, extending a rally built on three separate catalysts.The stock advanced more than
Author  Beincrypto
Sept 24, Thu
Palantir Technologies shares climbed above $190 on September 23, 2026. That marked its highest level in nearly a year, extending a rally built on three separate catalysts.The stock advanced more than
placeholder
Homes or Stocks? US Households Now Lean on Stocks Like Never BeforeEquities now account for 39.9% of US household net worth, the largest share in Federal Reserve records.Owners’ equity in residential real estate fell to 19.3% in the same quarter. The gap between the
Author  Beincrypto
Sept 23, Wed
Equities now account for 39.9% of US household net worth, the largest share in Federal Reserve records.Owners’ equity in residential real estate fell to 19.3% in the same quarter. The gap between the
placeholder
Market Is Primed for a ‘Face Ripper' Rally Thanks to Four Ingredients Says Tom LeeFundstrat head of research Tom Lee says the market is primed for a face-ripping rally into month end. He named four specific ingredients behind the call.Lee, a CNBC contributor, joined Freedom Capital
Author  Beincrypto
Sept 22, Tue
Fundstrat head of research Tom Lee says the market is primed for a face-ripping rally into month end. He named four specific ingredients behind the call.Lee, a CNBC contributor, joined Freedom Capital
placeholder
What to Expect From US Stock Markets In the Fourth Week of SeptemberUS stocks reopen Monday with the 10-year Treasury yield at 5% and the Dow down more than 1.5% last week. A missile strike on Riyadh adds oil risk on top.Four events shape the days ahead. Yemen’s Houth
Author  Beincrypto
Sept 21, Mon
US stocks reopen Monday with the 10-year Treasury yield at 5% and the Dow down more than 1.5% last week. A missile strike on Riyadh adds oil risk on top.Four events shape the days ahead. Yemen’s Houth
Live Quotes
Name / SymbolChart% Change / Price
SPCX
SPCX
0.00%0.00

US Stocks Related Articles

  • The Fed just raised rates — what does that mean for the Magnificent 7?
  • AMD has joined the US$1 trillion club — these AI stocks are surging with it
  • The AI trade is splitting — is money moving from chips into software?
  • Megacaps are masking weakness underneath the US market — what does it mean for traders?
  • How to Buy Micron Stock (MU): A Beginner's Guide for Australian Investors
  • Stocks slide as oil nears US$95 and bond yields surge — what should investors watch now?

Click to view more