Elon Musk’s brief tenure as the world’s first trillionaire is under threat after SpaceX shares suffered a dramatic fall, wiping more than $150bn from his personal fortune in a single day. The rocket company’s stock tumbled 16% on Monday, reducing Musk’s net worth to an estimated $1.1tn, according to Forbes. The decline has dragged SpaceX’s market value from a peak of about $2.99tn last week to just over $2tn – a drop of nearly $1tn, or, as analysts have noted, almost one Musk.
SpaceX floated on the stock market on 12 June in the largest initial public offering in history, raising approximately $75bn and valuing the company at around $1.77tn at its debut. Shares were priced at $135, and after a stellar rally hit a record high of $225.64 on 16 June, briefly pushing Musk’s wealth to $1.5tn. But the stock has since retreated sharply, closing at $156 on Monday night – slightly above the $150 opening price but well below the high. The option market is now bearish, with financial analyst Bill Blain of Windshift Capital warning that the slide could push the stock below $100 if it continues. “There was clearly good money to be made playing the FOMO curve that erupted around the deal, but the secret of any good party is knowing when to bail out,” he said.
Most investors who bought into SpaceX since the float are facing smaller losses, although everyone who participated in the IPO remains in profit. Danni Hewson, head of financial analysis at AJ Bell, described the volatility as typical for post-IPO stocks. “SpaceX might have seemed charmed after its record-breaking IPO and subsequent rally, but it’s come down to earth with a bump,” she said, adding that emotional decision-making based on anticipation of huge leaps in space exploration should not replace clear-eyed, patient investing.
Musk also suffered a 5.8% drop in Tesla shares on Monday, compounding the pressure on his wealth. Tesla’s stock closed at $381.61 on 23 June, having lost nearly 12% over the previous four weeks, though it remains 12% higher over the past 12 months. The all-time high closing price for Tesla was $489.88 on 16 December 2025.
Tech sector under pressure
The broader technology sector is being hit by a sell-off in artificial intelligence and semiconductor stocks, fueled by growing expectations that the US Federal Reserve could raise interest rates before the end of the year. The Fed hinted at the possibility last week, a move that would be painful for AI companies that have issued huge amounts of debt to fund expansion. The downturn was triggered by a cautious AI chip outlook from Broadcom, a deepening memory chip crisis, and a projected collapse in global smartphone demand. Shares in Advanced Micro Devices and Intel fell sharply on 5 June, and the volatility has been amplified by leveraged exchange-traded funds that are forced to sell into weakness to maintain their target ratios.
SpaceX itself is heavily exposed to debt markets. On 23 June the company priced a $25bn inaugural bond issuance across five tranches with maturities ranging from 2031 to 2056, intended to refinance an outstanding bridge loan facility. That bridge loan was taken out in March after Musk merged his artificial intelligence lab, xAI, and social media platform X into the rocket company. According to Bloomberg, the bond issue represents the final step in replacing the costly debt that helped finance Musk’s 2022 acquisition of X, as well as repaying loans and bonds issued by xAI last year. The refinancing is expected to reduce annual interest expenses from $1.8bn to $1.5bn.
SpaceX’s financial performance remains loss-making despite its high valuation. The company posted a net loss of $4.94bn in 2025 and $4.28bn in the first quarter of 2026. Morningstar has placed a valuation of $780bn on the business, focusing on its core rocket and Starlink operations, and suggested investors wait for the stock to stabilise. Starlink contributed about 61% of total company revenue in 2025, generating $11.4bn, and had over 10.3 million active customers as of March 2026.
The merger with xAI was completed in February 2026 in an all-stock deal valued at approximately $1.25tn. Following the merger, several co-founders departed, and in May 2026 xAI ceased to exist as a separate company, with its Grok and X operations becoming part of SpaceX’s AI division.
Airbus ordered to inspect A380 wings after cracks found
Shares in Airbus dipped 0.5% on Tuesday after the European Union Aviation Safety Agency issued an emergency airworthiness directive requiring urgent inspections of 16 A380 aircraft. The directive, effective 24 June, follows the discovery of cracks in the wing mid-spar, a key structural element that carries much of the aerodynamic load during flight. Fifteen of the affected planes are operated by Emirates and one by Australia’s Qantas. Five of the Emirates aircraft have already been grounded and require immediate inspection, while the remaining 11 must be examined within 25 flight cycles. It is not the first time the A380 has faced wing-related structural problems; EASA ordered fleet-wide inspections in 2012 for cracks found in wing rib feet.
UK property sector rallies on Segro takeover approach
Shares in UK real estate investment trusts rallied broadly after US rival Prologis made a takeover approach for Segro, one of Britain’s largest warehouse landlords. Prologis’s offer valued Segro at £12.6bn, nearly 25% more than its market value before the approach was made public. The bid was “unequivocally rejected” by Segro’s board, which dismissed the proposal after receiving it on 16 June. Segro’s shares jumped 15% to 857p, approaching Prologis’s bid price of 925p each.
The news sent ripples through the sector. Land owner and developer Harworth rose 5.6%, while self-storage group Big Yellow gained 4%. Oli Creasey, head of property research at Quilter Cheviot, said the bid would put the entire UK REIT sector in the shop window for larger foreign companies. “Segro may be the biggest fish in the UK REIT pond, but at a market cap below £10bn is a minnow compared to Prologis,” he said. Whether the combination goes ahead remains to be seen, Creasey added, noting that Prologis would be reluctant to increase the offer materially and take it above net asset value.
Segro began as The Slough Trading Company in 1920, when a military repair depot was turned into an early modern industrial estate. Its business boomed during the pandemic, driven by surging demand for home deliveries and warehouse space. The UK REIT market is projected to grow from $83.2bn in 2025 to $144.4bn by 2034, according to industry forecasts, with growth drivers including demand for income-generating assets, tax advantages, and a shift toward sustainable and residential properties. After a period of defaults and valuation concerns, analysts are optimistic about a potential recovery as interest rates appear to be peaking.
Today’s agenda: 9am BST – IFO survey of Germany’s business climate; 10am BST – House of Lords Financial Services Regulation Committee hearing on the consumer insurance market; 10:15am BST – Treasury Committee hearing on the Financial Services and Markets Bill; noon BST – US mortgage approvals data; 3pm BST – US new home sales data for May.
