Elon Musk's companies Tesla and SpaceX both experienced significant stock declines during the week ending Friday. Tesla shares plunged 18% to close at $313.03 on Friday, marking their worst weekly slump since 2022, while SpaceX dropped 7.2% over five days to $115.07 Friday, its lowest since the company's record IPO last month. The combined declines wiped away about $130 billion of Musk's wealth, weeks after he'd become the world's first trillionaire, prompting Musk to post "(Former) trillionaire" on X on Friday. Tesla's slump was triggered by weaker-than-expected second-quarter earnings reported late Wednesday, when the electric vehicle maker turned cash flow negative due to increased spending on robotaxis, humanoid robots, and chip fabrication projects.
Tesla Reports Negative Cash Flow in Q2 2026 Earnings
Tesla reported second-quarter results late Wednesday that missed analyst expectations. The company turned cash flow negative due to a surge in spending on futuristic projects including robotaxis, humanoid robots, and a giant chip fab. Analysts at Argus Research, which has a hold rating on the stock, wrote in a report on Friday: "We expect this to pressure free cash flow and delay earnings growth, without providing any near-term shareholder return. We believe it will be nearly impossible for Tesla to generate any consistency in profit growth in the near-term." Tesla's stock is now down 30% for the year, making it by far the worst performer among tech's megacaps.
SpaceX Stock Falls 43% From June Peak Following IPO
SpaceX's stock has been on a steady downward trajectory over the past month following an initial pop when the company went public. The shares have dropped for four of the past five weeks and are about 43% off their peak close on June 16. The stock closed at $115.07 on Friday, its lowest level since the company's record IPO last month.
SpaceX Delays Starship V3 Test Flight Due to Weather
SpaceX plans to attempt the 13th test flight of Starship, the largest rocket ever built or flown, on Friday evening. The company plans to fly the new version of the rocket, Starship V3, from its company town and launch facility in Starbase, Texas. In a post on X, the company said it delayed the test flight planned for Thursday "due to weather." SpaceX previously scrubbed a test flight last week after the rocket's booster triggered a hold, which "shut down the engines right as they were starting to ignite," a SpaceX employee said during a livestream of the event. The rocket is designed to be fully reusable and is considered crucial for SpaceX's near-term aims to vastly grow its Starlink satellite network. A successful launch of Starship V3 would be the first since the company's IPO. SpaceX plans to use Starship to bring U.S. astronauts back to the Moon's surface, and Musk wants the rocket to eventually run manned missions to Mars.
Musk Appears in Contentious Interview With The Economist
Musk made a public appearance this week, sitting down for what turned out to be a contentious interview with The Economist. Zanny Minton Beddoes, editor-in-chief of the publication, asked Musk about his support for "not just the populist right, but the far right, in fact very fringe parties in some countries." In addition to his financial and vocal support for President Donald Trump, including his work for the second administration, Musk has endorsed Germany's AfD, an extreme anti-immigrant party, as well as the UK's Restore Britain, founded by Rupert Lowe, who also calls to "reverse mass migration." "It's just normal people!" Musk said in response. He berated Beddoes and "the traditional media" for an "absurd characterization of the far right."
FAQ
What caused Tesla stocks to fall 18% during the week?
Tesla shares plunged following weaker-than-expected second-quarter earnings reported late Wednesday. The company turned cash flow negative due to a surge in spending on robotaxis, humanoid robots, and a giant chip fab, leading analysts to express concerns about near-term profit growth consistency.
Why did SpaceX delay the Starship V3 test flight?
SpaceX delayed the test flight planned for Thursday due to weather, according to a post on X. The company previously scrubbed a test flight last week after the rocket's booster triggered a hold that shut down the engines right as they were starting to ignite.
