Elon Musk Lost His Trillionaire Status as SpaceX Shares Dropped 26%. Are Tesla and SpaceX Stock Still a Buy?

Elon Musk has been the wealthiest antheral successful the satellite since 2024, and helium reached trillionaire presumption for the archetypal clip erstwhile Space Exploration Technologies (NASDAQ: SPCX) banal concisely topped $200 a stock successful its archetypal week of trading. However, SpaceX banal is present 26% disconnected its highs, and Elon Musk is nary longer a trillionaire.

What does that mean for his companies, SpaceX and Tesla (NASDAQ: TSLA), and for shareholders?

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Elon Musk and ownership

Many of the world's billionaires person their wealthiness tied up successful stock, usually arsenic executives of their companies. Elon Musk heads 2 of the world's top-15 astir invaluable companies, and helium owns a important involvement successful each. As of July, helium owns 717.1 cardinal Tesla shares, oregon 15.7% of the company, which is worthy astir $282.4 cardinal astatine today's price. He besides owns astir 46% of SpaceX stock, with much that could travel his mode based connected show measures. At today's prices, that's $704.5 cardinal worth, and together, his nett worthy is $987 billion, conscionable shy of $1 trillion.

Both of these stocks person been sliding lately, though they're some trillion-dollar companies. SpaceX is the seventh-most-valuable institution successful the U.S., worthy $1.94 trillion, portion Tesla is 11th and worthy $1.48 trillion. Tesla banal is down 12.4% this year. At $148 a share, SpaceX banal is inactive implicit its IPO terms of $135, but it's dropped beneath its marketplace unfastened terms of $150.

What astir different shareholders?

Tesla shareholders person been well-rewarded implicit time. It's up much than 24,640% since it went nationalist and has astir surely minted immoderate millionaires, adjacent retail investors who aren't institution insiders. However, similar SpaceX, it has attracted investors based connected hype and Elon Musk fandom. It's a increasing company, but there's accelerating contention successful the electrical conveyance space, and determination are worries astir little profits and a precocious valuation -- based connected its shrinking nett income, the banal presently trades astatine 368 times trailing 12-month earnings.

SpaceX is adjacent much expensive, trading astatine 110 times sales, and it's reporting precocious nett losses. It's adjacent clearer that the investing thesis is based connected assurance successful Elon Musk's vision.

Both of these are risky stocks, but SpaceX has an added hazard tied to Elon Musk's ownership, and that's his 82.3% voting rights. That means different shareholders person nary recourse if they're unhappy with his enactment oregon successful making immoderate different decisions astir the institution and its direction.