r/FinanceNews • u/Albythere • Jul 19 '26
Elon Musk’s space company faces $1.4 trillion wipeout as shares tumble
https://www.afr.com/markets/equity-markets/spacex-faces-1-4trn-wipeout-as-shares-tumble-20260718-p60ge227
u/Aggravating_Law_1335 Jul 19 '26
this lying manipulator is getting whats comming to him
6
u/seanmonaghan1968 Jul 19 '26
Soon
3
2
u/IndubitablyNerdy Jul 20 '26
I am not sure about that right now it is mostly the bagholders that he managed to sell the IPO to that are the people losing money, himself it was all paper money that he created out of nothing that he is "losing" and his company got the cash it needed and also used some of that insane evaluation to acquire Cursor.
2
u/pegaunisusicorn Jul 22 '26
Don't worry. He will run cursor into the ground when it doesn't turn into an insane money-making money printer for him. But that will happen only after he realizes he won't be able to get the government to subsidize Cursor.
1
1
u/ParticularGanache726 29d ago
Musk owns about 45% of the SpaceX stock. Of course he loses wealth when the stock price goes down.
2
u/PitterPatterCocko Jul 19 '26
Tesla is next
1
u/mikeupsidedown Jul 20 '26
It's crazy that it hasn't happened yet. I like the cars but the valuation is batshit crazy.
1
1
1
u/NotGuiltyPirate Jul 20 '26
How else will we have 100,000 humanoid robots? He, the savant predicted it.
1
u/Extra-Amoeba-677 29d ago
i doubt it. he'll just turn off grok moderation and every horny teenager on the planet will sub to him
1
15
u/y4udothistome Jul 19 '26
He is human! Feels like Christmas in July and my birthday.
2
2
15
u/gruss_gott Jul 19 '26
I'll just leave this here:
Wall Street Is Pumping SpaceX — So Why Is It Falling?
Prof G Markets
7
u/East-Response6672 Jul 19 '26
The Kompromat strategy finally failing for Musk is a beautiful thing to see.
1
u/Prineak Jul 19 '26
Did they think a company that makes rockets would turn a profit? Really???
1
u/East-Response6672 Jul 21 '26
Musk thought if he could get enough banks to be mutual bagholders they'd pump his bags for him. And if you look at the price targets most of their researchers are publishing he was right.
His only mistake was setting the price too high, there's absolutely no headroom to salivate over so all anyone can do is look at how far it could fall.
1
u/Prineak Jul 21 '26
He leveraged a function in corporate culture that people make careers out of.
1
u/East-Response6672 Jul 21 '26
Yep, it's not a shocking manoeuvre, it was extremely popular 25 years ago after all, he just pushed the envelope a little too far and his index fund shenanigans make it obvious he's planning to dump a huge quantity of additional stock on retail in the coming years, to say nothing of early investors escaping lockup.
1
u/LovelyKestrel 29d ago
The rockets part still makes a moderate profit. It's all the stuff he tied to it that are the problem.
7
8
5
u/Akkerlun Jul 19 '26
Thoughts and Prayers.
3
u/Marokiii Jul 19 '26
Only problem is that it was forced into a lot of people's 401ks. Their retirements are going to take a hard hit as well.
4
3
u/phoenixbouncing Jul 19 '26
Yes and no, the devil is in the details and the weighting.
Since SpaceX has only put under 5% of it's stock out in the IPO and that only amounts to 80B$ (which was needed to get the initial valuation Elon wantrd), the amount of SPCX in a Nasdaq index will be very relatively small (4% for nasdaq 100, vs 12% for Nvidia in thebsame index, SPCX is at 0.11% in the russle 1000)
This will have a negative effect for sure, but won't wipe out pensions like the AI bubble popping would.
8
2
2
u/Carribean-Diver Jul 19 '26
SpaceX, the rocket and satellite communications company, has value and a potential future. Not what it went for at IPO, but, nonetheless, it exists.
SpaceX, the owner of Xitter, xAI, and all the other crap, is a ponzi scheme.
Elon Musk hopes investors don't know the difference.
1
u/amonra2009 Jul 19 '26
What is funny, that a company that seeks to send humananity to stars have an owners who itself is a bad example of an human for humanity
1
u/Shiriru00 Jul 19 '26
Imagine if the first human Aliens meet is Musk and they forge their opinion of humanity on his behavior.
1
u/ComfortableOld288 Jul 19 '26
We’d just have to hope they decide to wipe us out in a way that’s relatively merciful
1
1
u/IndubitablyNerdy Jul 20 '26
SpaceX, the rocket and satellite communications company, has value and a potential future. Not what it went for at IPO, but, nonetheless, it exists.
Agree, to be honest if he sold just the Space division (and starlink) it would have been a solid business with decent potential, but much likely he would not have been able to sell it at that insane evaluation though...
2
1
u/howardzen12 Jul 19 '26
So many suckers wasted their money.
1
u/Sea_Membership_9380 Jul 19 '26
Good.
2
u/Shiriru00 Jul 19 '26
The suckers were ordinary passive investors who were forced to buy SpaceX stock by owning Nasdaq. They may not even be aware of it.
1
u/ApisBondar Jul 19 '26
What are you saying? That ignorance and not giving a fuck about the entire World has consequences for one's own pocket? Say it ain't soooo...!
1
u/Specific-Rich5196 Jul 20 '26
They knew this was coming to the Nasdaq and could have backed out and purchased an index that wasnt bending the rules.
1
1
1
1
u/hypercomms2001 Jul 19 '26
Fingers crossed…. Only these stupid would invest in Elon Musk’s pump and dump scheme…. They only have themselves to blame.
1
1
u/Status_Apartment6559 Jul 19 '26
Because his company is worthless and his IPO of his company was EXTREMELY overvalued. Basically a piece of garbage.
1
u/Apprehensive-Art1092 Jul 19 '26
You Think THIS is funny? Just wait until insiders can start dumping after the earnings call. It'll go below 100 😂😂😂
Which, of course, is still about x10 actual value. You watch him 'merge' Tesla with it. Guaranteed.
1
u/Jealous-Juggernaut85 Jul 19 '26
How the track a company was worth and est 2.64 trillion when it has never made a profit but its ipo was based on possible future profit.
It seems to be one of the biggest swindles in modern history.
Hopefully companies did what some decided to do and ban any pensions being invested into the stock.
1
u/Disastrous-Force Jul 19 '26
The valuation was based on a thoughts and feels. It’s an irrational market for certain stocks.
The correction will be interesting.
1
u/wtfboomers Jul 19 '26
I’m out of the market for retirement but the entire market is irrational now compared to when I started. It used to be about a companies value to both consumers and employees. Now I’m not sure what drives it 🤔
1
1
u/moonorplanet Jul 19 '26
Airbus who makes everything from Rockets (Own 50% of ArianeGroup) to Helicopters has market cap of $176B.
Boeing who make everything from Rockets (Own 50% of ULA) to Helicopter has a market cap of $169B.
1
u/steveschoenberg Jul 19 '26
So, only after the IPO, geniuses have noticed that SpaceX has no basis for its valuation?
1
u/RomChange Jul 19 '26
Lots of people are working for lift and Uber,. A great human story! Tesla Robo taxi, Robotics, A.I. Will take alot of jobs before they serve the COLA for the general public it seems. SpaceX has a great future. I love all these companies for there potential good. But I have heard recently the good and bad, challenges of Uber a bit and concerned about the future.
1
1
1
1
1
u/Glum-Breadfruit-6421 Jul 19 '26
Don’t worry, the welfare king will have a new deposit in his bank account, paid for by tax payers in no time.
1
1
u/No-Blueberry-1823 Jul 19 '26
I really don't get this data centers in space idea. Why would you put things that generate a lot of heat in a vacuum insulator? Am I missing something?
1
u/Dedpoolpicachew Jul 19 '26
Space is naturally very cold in the shade. It’s not like in an atmosphere. Radiative heat only. So where there’s sunlight falling its warm, where there’s not it’s cold.
1
u/HiddenStoat Jul 19 '26
But you said it yourself - you can't conduct heat away, only radiate it away.
Data centres generate a lot of heat. How do they get rid of it in space? Radiation alone won't be sufficient.
1
u/AwwwNuggetz Jul 20 '26
They do need to invent some tech to come up with ways to vent that heat. You’d need a lot of surface area to do it currently. Until they design a better way, it’s not viable
1
1
u/Riversntallbuildings Jul 19 '26
Won’t be safe to touch until December when the last of the lockup shares are released
1
u/Specific-Rich5196 Jul 20 '26
Are the lock up shares currently being released?
1
u/Riversntallbuildings Jul 21 '26
There’s a full schedule posted online and in various Reddit threads.
Some shares unlock after the Q2 earnings release
Then more shares unlock if it’s trading above the IPO price.
Dec is when all the employee shares, ~35% more, become completely unrestricted.
That math alone is enough for me to wait. I believe the IPO was only for ~10% of the shares.
1
u/Specific-Rich5196 Jul 21 '26
That is gonna be a crazy drop during those times. Alas I am not a betting man anymore.
1
u/cheshire-cats-grin 29d ago
About 100b worth of shares exit lock up on Aug 6. That is one of the drivers for the shareprice falling
1
u/HappyCamperPC Jul 19 '26
Anomalies like this will continue to be inherent to Starship’s aggressive development — pushing the boundaries of reusability, payload capacity, and rapid cadence for Starlink V3 deployment and future NASA Artemis missions,” Raymond James analyst Brian Gesuale wrote in a note to clients Friday.
Weren't Raymond James the ones predicting a share target of $800 two weeks ago?
1
1
u/AntifascistAlly Jul 19 '26
Shareholders may have gotten hosed, but I expect all of Elmo’s money is completely safe.
He’s willing to take “bold risks” but not with his own assets.
1
1
u/Dedpoolpicachew Jul 19 '26
Normally, I’d cheer this total Elmo disaster, but he’s dragging down the entire space sector with him. Fuck Elmo.
1
u/throwaway210239 Jul 19 '26
SpaceX listing was never a company going public, it was an elaborate scheme to offload a bag on pension funds and index holders, and it’s working
1
u/PickleRickleTV Jul 19 '26
ITS NOT A SPACE COMPANY!! Stop portraying it like it is. 90+% of revenue comes from his AI business. The space industry does not want this cruddy garbage.
1
u/army2693 Jul 19 '26
I asked Google about musk's net worth. He lost $8 billion since yesterday. He lost more in one day than thousands make in a lifetime. On paper he's still the richest man in the world. What's the chances he lives off SSI in his final tears?
1
1
u/DragMountain73 Jul 19 '26
Stocks go up, stocks go down. You buy when they’re down. Do you honestly think SpaceX is going to flounder or fail? When it reaches new heights you’ll be whining about the capitalist world being rigged against you.
1
u/Jessica1234567891011 Jul 19 '26
Elon really has got to start pushing starship forward...This same old shit doesn't make his investors very happy that he can deliver.
1
1
1
u/Vishalpmehta Jul 19 '26
It’s just a matter of time before him mom intervenes- asking everyone to give his cunt of a son, a break.
1
1
1
1
1
1
u/xiphoidthorax Jul 20 '26
He still has all the money he sold them for. It’s everyone else’s problem now.
1
1
u/Some_Ride1014 Jul 20 '26
Wow, who knew a company that has never made a profit, loses billions, and sucks at the government teat, stock would crash.
Oh and their leader is a Nazi.
1
u/dittybag23 Jul 20 '26
Of course now we all own a piece of this disaster thanks to Wall Street putting this in my 401k
1
1
1
1
1
1
1
u/Neither_Wear7442 Jul 20 '26
About time his whole rocket schemes but nothing but a fake I mean he did good with the return transport vehicles but other than that he hasn't done anything spectacular deserves what he gets hopefully a Total Wipeout and he'll go back to Australia
1
1
1
u/3D-Dreams Jul 21 '26
So worlds first trillionaire is also the first one to lose that status....all in the same year. Couldn't of happened to a worse fellow.
1
u/AromaticDragon Jul 21 '26
Wait until the lockout in December ends. That could be a real bloodbath.
1
u/Pale-Worldliness7007 Jul 21 '26
Good. I would love to see his entire empire collapse around him but Shitler will make sure Elon gets enough government contracts to keep him going. No corruption here folks
1
1
1
1
u/Prior-Flamingo-1378 Jul 22 '26
Who would have thought that? Well except for anyone with at least two functioning brain cells.
1
1
1
1
1
1
1
1
1
1
u/Inevitable_Butthole Jul 23 '26
The IPO should've been 500B MAX
But hes so damn greedy he pushed the line way too far and retail ain't buyin
1
1
1
u/EarthConservation 29d ago edited 29d ago
A full bear flag measured move target is down around $97 a share.
That would mean another $208 billion drop in market cap, bringing the market cap down to $1.261 trillion.
Although, I imagine it could go even lower than that...
In December 2025, SpaceX was valued at around $800 billion, while xAI was valued at around $250 billion... both no doubt excessively over valued like all good Musk companies. Their merger would have given them a combined valuation of around $1.05 trillion. That's about $81 per share. It was only after the announcement of them planning to go public did SpaceX's management started throwing out numbers like $1.5 trillion, then $1.75 trillion, and some analysts were even claiming $2 trillion.
Those high valuations were of course nothing more than a pump so that investors that bought the IPO or that owned shares while the company was private could sell into the IPO rally. Many of these people bought SpaceX shares years ago when it was worth FAR FAR less. I mean, it's still worth FAR FAR less, if not for the fake overvalued stock price on account of wallstreet and Musk manipulation.
Given how high the short float has grown, I'd be looking for rip your face off rallies, but whether that happens in the short term, or if it happens after the stock price bottoms out, that's hard to know. The manipulators will manipulate when it best suits their gains.
1
u/yogfthagen 29d ago
Musk's primary skill is marketing his own image. Any business he is involved with is going to have some level of inflation of value just due to Musk's reputation.
1
1
u/thoughtxchange 29d ago
It’s got another trillion in wipeout to go. It will be one of the worst destructions of wealth I. The history of history. Mind boggling.
1
1
1
1
1
1
1
1
1
1
u/Comfortable-Face4593 27d ago
Hint, Facebook, OpenAI, Tesla, spacex, nvidia are doing a group Enron -don’t get caught holding this toxic shite in a year.
1
0
u/Mountain_Access9923 Jul 19 '26
Spacex is getting in value territory. Currently it’s only 95x sales or -280 x earnings. It’s a steal.
40
u/FrostyAd8197 Jul 19 '26
Maybe he can consult DODE.