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

SpaceX shares have fallen 26% from post-IPO highs, dropping Elon Musk's net worth to approximately $987 billion and costing him his trillionaire status. The decline puts fresh pressure on both SpaceX and Tesla (TSLA) valuations, which The Motley Fool flags as stretched relative to fundamentals.

Tesla trades at 368x trailing earnings while profits are shrinking. SpaceX, though private, commands a 110x sales multiple despite posting significant net losses. The combination of Musk's wealth decline and deteriorating fundamentals at Tesla raises questions about whether either equity offers value at current levels.

The 26% SpaceX drawdown marks a significant reset for the space company and weighs on Musk's cross-holdings. For Tesla shareholders, the headline valuation multiple of 368x trailing earnings presents a stark picture when paired with contracting profitability. The Motley Fool concludes neither stock qualifies as a bargain.