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Elon Musk's net worth drops nearly 40% in a month as The Boring Company seeks $4 billion funding
Elon Musk's net worth fell nearly 40% in a month as SpaceX and Tesla slid, while The Boring Company seeks to raise $4 billion at a $20 billion valuation.
Elon Musk's net worth has dropped sharply over the past month, falling from around $1.32 trillion to about $832 billion, a decline of nearly 37% (around $500 billion). During the same period, the Bloomberg Billionaires Index showed Musk's wealth falling at the fastest pace ever recorded for a single person.
Even as his fortune declined, Musk is trying to raise fresh money for The Boring Company, his tunnel-building business. The Boring Company is reportedly in talks to raise about $4 billion in a new funding round at a valuation of around $20 billion, according to 24/7 Wall St.
If the deal goes through at that valuation, it would more than triple the company's 2022 valuation of $5.7 billion. The funding deal has not been completed yet, and the terms could still change. Elon Musk has not publicly commented.
What caused Musk's wealth to fall?
The biggest reason for the decline in Musk's wealth was SpaceX, whose shares reportedly fell around 41% to 45% during the month. The fall in SpaceX's value reportedly erased more than $1 trillion in market capitalization, with an aborted Starship launch adding to investor concerns.
Tesla also contributed to Musk's wealth decline after reporting weaker-than-expected financial results. On July 22, 2026, Tesla reported second-quarter revenue of $28.24 billion. Tesla reported adjusted earnings of $0.33 per share, missing analysts' expectations by 38.51%, according to 24/7 Wall St.
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Tesla's free cash flow turned negative to $1.09 billion, while capital spending increased sharply. Tesla shares closed at $313.03 on July 24, down 17.81% for the week and 30.39% for the year.
Tesla plans major spending
Tesla Chief Financial Officer Vaibhav Taneja told analysts that "CapEx more than doubled sequentially, and we expect it to increase further in the second half of 2026". Taneja said Tesla expects to spend more than $25 billion this year and plans to secure debt facilities allowing it to borrow up to $30 billion.
Elon Musk described the company's investment plans as "one of the fastest industrial scale-ups in America" since World War II. The 24/7 Wall St report also said short sellers made around $4 billion in a single day after Tesla's stock dropped.
Why The Boring Company matters
Although a $4 billion fundraising round would normally attract major attention, The Boring Company has largely stayed out of the spotlight. The company currently operates the Vegas Loop transportation system.
It has also proposed or announced tunnel projects in Nashville, Dubai, Baltimore, Chicago and Los Angeles. As of mid-2026, the company reportedly has between 687 and 707 employees, according to 24/7 Wall St. Estimates of the company's annual revenue vary widely, ranging from about $25 million to $500 million.
Questions over the company's track record
The Boring Company has received relatively little public attention despite being one of Musk's ventures. In Walter Isaacson's 615-page biography of Elon Musk, The Boring Company is discussed in only three pages. Several tunnel projects in California, Illinois, Texas, Florida and Maryland reportedly stalled or were cancelled with little public follow-up.
Seven years after it was founded, the company had built only about 2.4 miles of operating tunnel. This is despite Las Vegas approving plans for a 68-mile underground transit system. The gap between the company's operating record and the high valuation investors are being asked to accept is a key issue to watch, according to 24/7 Wall St.
What investors should watch next
The identity of the lead investor in the fundraising round will be an important signal of market confidence .It said investment from a sovereign wealth fund or a major Silicon Valley firm would support the proposed $20 billion valuation, while backing mainly from Musk-linked family offices may not carry the same weight.
Another key sign will be whether Las Vegas begins construction on additional Loop tunnel sections before the end of the year. Despite the recent decline in his wealth, Musk remains the world's richest person.
However, if the $4 billion funding round is completed on the reported terms, it will be the strongest test yet of whether Elon Musk's reputation alone can justify a threefold increase in The Boring Company's valuation, according to 24/7 Wall St.
