AI Bubble Fears Crater SpaceX Stock 31%, Stripping Musk's $1T Crown

The artificial intelligence bubble fears are not just hitting AI startups—they're dragging down the broader tech market, including space giant SpaceX. Musk, a central figure in AI through xAI and Tesla, saw his fortune evaporate by over $200 billion as AI mania concerns triggered a sell-off in high-growth names.

Elon Musk’s historic ascent to trillionaire status, achieved earlier this month following SpaceX’s blockbuster initial public offering, has proven fleeting. As of June 24, 2026, the Bloomberg Billionaires Index pegs his net worth at approximately $957 billion, down from a peak comfortably above the $1 trillion mark. The immediate cause: a brutal slide in SpaceX shares, which have plummeted over 30% from an intraday high of $225 on IPO day (June 12) to close around $156 on June 23. The drop erased roughly $200 billion from Musk’s fortune in a matter of days, underscoring both the extreme concentration of his wealth and the market’s re-assessment of SpaceX’s dizzying $2 trillion-plus valuation.

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Musk’s holdings in SpaceX, estimated at $744 billion, represent nearly 80% of his total net worth, dwarfing his $158 billion Tesla stake.

The SpaceX IPO itself was a landmark event. Shares opened at $150 and surged to $225, valuing the company above $2 trillion and making it the most valuable space enterprise ever traded. Musk’s holdings in SpaceX, estimated at $744 billion, represent nearly 80% of his total net worth, dwarfing his $158 billion Tesla stake. However, the post-IPO euphoria evaporated quickly as a broader tech sell-off took hold, driven by mounting fears of an artificial intelligence bubble and the specter of rising interest rates. The rout hit growth stocks disproportionately, and SpaceX—despite its tangible assets and dominant position in launch services and satellite internet—was not spared. The company’s 2025 loss of $4.9 billion further fueled valuation skepticism, with analysts questioning whether a company yet to demonstrate sustained profitability deserved a market cap exceeding that of most established aerospace and defense contractors combined.

The decline carries significant implications for the space sector, the AI industry, and the venture capital ecosystem. For SpaceX, the immediate challenge is the approaching expiration of its post-IPO lockup period. When early investors, employees, and insiders gain the ability to sell, the stock could face additional selling pressure. Fortune has highlighted this as a critical test of the company’s stock stability. A disorderly exit by pre-IPO shareholders could drive the price lower, potentially triggering a negative feedback loop for Musk’s wealth and for sentiment toward space investments. Conversely, if the lockup period passes without a flood of sell orders, it might signal confidence in SpaceX’s long-term prospects—particularly its Starlink constellation, Starship development, and Mars ambitions.