Elon Musk’s estimated net worth has fallen by about $600 billion in recent weeks as the value of major holdings tied to Tesla and SpaceX has declined amid challenges facing both companies.

Musk’s wealth now stands at about $719 billion, according to the source article, leaving him wealthier than Larry Page and Sergey Brin combined. The decline follows a June peak of more than $1.32 trillion, based on Bloomberg estimates cited in the report. Because most of Musk’s fortune is tied to equity stakes rather than cash, changes in public share prices and private-company valuation marks can have an outsized effect on daily wealth estimates.

Musk’s Wealth Falls From June Peak

Musk, described in the report as the world’s first trillionaire, has lost more than $600 billion in the past few weeks. The size of the decline is larger than the gross domestic product of many countries. If the amount lost were represented by a publicly traded company, it would rank as the 25th-largest company in the world, according to the article.

Despite the drop, Musk remains one of the world’s richest individuals, with an estimated net worth above $719 billion. His wealth is largely tied to stakes in companies including Tesla, SpaceX, Neuralink and The Boring Company.

Musk owns a 13% stake in Tesla, which rises to about 20% when exercisable stock options are included. He also owns between 38% and 42% of SpaceX, according to the report.

Tesla Shares Drop After Earnings

The decline in Musk’s net worth accelerated after Tesla shares fell following the company’s latest financial results. Tesla stock dropped to a low of $306 last week, while the company’s market capitalization fell from $1.7 trillion to $1.1 trillion, according to the article.

Tesla’s financial results were described as mixed. Revenue increased in the second quarter of the year as deliveries rose. However, gross margins declined, which the report said indicated the company had lowered vehicle prices to attract more customers. For an automaker investing heavily beyond vehicle production, margin pressure and cash generation are closely watched because they affect how much operating flexibility the company has while funding new projects.

Tesla’s free cash flow also turned negative as the company increased investment in the data center industry. Musk does not expect Tesla to generate positive free cash flow this year, according to the report.

Yahoo Finance data cited in the article shows analysts expect Tesla’s revenue growth to slow in the current quarter. The estimate is for third-quarter revenue to decline by 2.40% to $27.42 billion.

The report also cited technical indicators for Tesla shares. The stock has fallen below the $337 support level, its lowest level in April this year. It has also formed a death cross pattern, with the 50-day and 200-day moving averages crossing. The article said this pattern points to additional downside over time, which would weigh further on Musk’s estimated wealth.

SpaceX Stock Falls After Post-IPO Momentum Fades

SPCX stock has also declined as the momentum seen in June faded, according to the report. The article compared the move with declines seen in other recent IPOs, including Circle Internet Group, Figma and Bullish.

The report said investors have concerns about several businesses in SpaceX’s portfolio. One major area cited was xAI, which owns X and Grok, the artificial intelligence platform competing with ChatGPT and Claude. The article said xAI continues to burn billions of dollars and that data shows its market share is not growing. It cited a 5% market share.

SpaceX also recently aborted a rocket launch because of a mechanical failure. The report said this occurred as the company’s launch business faces increased competition from companies such as Rocket Lab. Last week, Rocket Lab won a $266 million contract from the Pentagon. Jeff Bezos’ Blue Origin has also recently crossed a $100 billion valuation, according to the article.

SPCX has also fallen amid valuation concerns, with some investors warning that the company’s $30 trillion total addressable market, or TAM, is significantly higher than reality.

The report said SpaceX stock will react to earnings expected early next month. It also cited recent sharp declines at other large companies as a comparison for the volatility investors are watching.

Musk’s estimated wealth remains highly sensitive to Tesla and SpaceX because a large share of his fortune is concentrated in those companies. Tesla’s rising capital spending and SpaceX’s post-IPO volatility have reduced the value of his holdings from their June peak. However, daily billionaire rankings are estimates and can change substantially with stock prices, private-company valuations and option calculations.

This article is for informational purposes only and does not constitute financial or investment advice. Billionaire wealth estimates, stock prices and technical indicators can change rapidly and do not guarantee future performance.