Elon Musk lost $45 billion in net worth on Monday as shares of his private aerospace company, SpaceX, plummeted following the failure of its Starship rocket during a test launch. The setback wiped out a significant portion of Musk's wealth, which is heavily tied to SpaceX's valuation.
Starship Launch Failure Triggers Share Drop
The Starship prototype, designed for deep-space missions, exploded minutes after liftoff from SpaceX's facility in Boca Chica, Texas. According to company officials, an anomaly in the propulsion system caused the rocket to lose control and self-destruct. The incident marked the third consecutive failure for the Starship program, which has faced delays and technical challenges.
SpaceX shares, traded in private markets, fell by 12% following the news, reducing the company's valuation from $150 billion to approximately $132 billion. Since Musk owns about 42% of SpaceX, the decline translated to a $7.6 billion loss in his personal stake. However, the broader impact on his net worth was amplified by declines in Tesla stock and other holdings.
Impact on Musk's Wealth and SpaceX's Future
The $45 billion loss brings Musk's net worth to around $220 billion, according to the Bloomberg Billionaires Index. Despite the setback, he remains the world's richest person. Analysts warn that repeated failures could delay SpaceX's ambitious plans for lunar and Mars missions, as well as its Starlink satellite internet expansion.
"The Starship program is critical for SpaceX's long-term revenue streams, including NASA contracts and commercial launches," said aerospace analyst Laura Chen of Morningstar. "Investors are growing impatient with the technical hurdles."
SpaceX has not disclosed a timeline for the next test flight, but Musk stated on X (formerly Twitter) that the team is "working around the clock" to fix the issues.
Broader Market Reactions
The news also affected Tesla shares, which fell 3.5% on Monday, erasing an additional $12 billion from Musk's wealth. Combined with the SpaceX decline, Musk's total paper losses for the day exceeded $45 billion. Other investors in SpaceX, including Alphabet and Fidelity, also saw declines in their stakes.
The Federal Aviation Administration (FAA) has launched an investigation into the Starship failure, which could lead to grounding of future launches until safety concerns are addressed. This regulatory hurdle may further pressure SpaceX's valuation in the coming months.
