Elon Musk stocks take $1.5 trillion hit with fresh test in SpaceX lockup ahead

Tesla and SpaceX have collectively shed $1.5 trillion in market capitalization since mid-June, marking a sharp reversal for Elon Musk's portfolio of companies. The decline follows an almost 50% drop across the two firms, with Tesla bearing the brunt as its publicly traded shares face continued pressure.

The timing adds urgency for SpaceX, which is approaching a lockup expiration that could unlock additional shares for early employees and investors. The private space company's valuation has taken a hit alongside Tesla's public market decline, creating a fresh test for Musk as he navigates capital structure decisions at SpaceX while managing Tesla's stock performance.

The $1.5 trillion loss represents one of the steepest combined drawdowns for the two companies, which together form the core of Musk's net worth. Tesla's publicly traded status makes it the more visible component of the decline, with the stock's movements directly impacting both retail and institutional portfolios heavily weighted toward the EV maker.