Economist Peter Schiff commented on the recent erosion of Elon Musk's wealth, noting a loss of nearly $100 billion in a single week driven by selloffs in Tesla Inc. and Space Exploration Technologies Corp. shares. In posts on X on July 24, 2026, Schiff remarked, "I'm old enough to remember when $100 billion was a lot of money," while clarifying that his comments were not critical of the Tesla CEO.

Schiff emphasized that the loss does not impact Musk personally, stating, "Elon is not in any pain. If I thought he was I would not have posted that." He further added, "I'm an Elon fan... I wish I was rich enough to 'lose' $100 billion in one week," framing the event as a testament to Musk's vast accumulated wealth rather than a failure.

The wealth contraction follows a volatile period for both companies. Tesla reported second-quarter 2026 revenue of $28.24 billion, beating estimates, but its earnings per share (EPS) of 33 cents missed Wall Street's consensus of 50 cents. Following the earnings release, Tesla shares declined nearly 18% in the last week, trading at $316.15 during overnight sessions.

Gary Black of The Future Fund LLC attributed Tesla's decline to management's caution regarding scaling autonomy. Meanwhile, SpaceX shares have fallen over 25% in the last month, currently trading at $114.10, well below its IPO price of $135. Despite the drop, investor Ross Gerber urged stakeholders not to bet against SpaceX, drawing parallels to early volatility seen in Tesla.

Market Performance Overview

What the Numbers Show

The divergence between Tesla's operational revenue beat and its stock performance highlights market sensitivity to forward-looking guidance rather than immediate financial results. While Tesla generated $28.24 billion in revenue, the miss on EPS expectations—33 cents versus a 50-cent consensus—triggered an 18% weekly decline. This suggests investors are pricing in concerns about profitability margins or future growth trajectories, particularly regarding autonomy scaling, rather than reacting solely to top-line sales figures.

Tesla Inc. reported second-quarter revenue of $28.24 billion, beating analyst estimates, although earnings per share of 33 cents missed the Street’s 50-cent consensus. The automaker marked a significant milestone by hitting $100 billion in trailing twelve-month revenue for the first time. This achievement was underpinned by a 25% year-over-year increase in vehicle deliveries and a robust expansion in its software services, with Full Self-Driving (FSD) subscriptions climbing 56% to reach 1.48 million active users. The mixed financial results highlight a divergence between top-line growth momentum and bottom-line profitability pressures.

Operational Highlights

The company’s operational metrics indicate strong demand despite broader economic headwinds. Deliveries rose 25% year-over-year, contributing to the record trailing revenue figure. A key driver of this growth was the adoption of its autonomous driving technology. Active FSD subscriptions hit 1.48 million in the second quarter, representing a 56% increase from the prior year period. CEO Elon Musk noted that customer behavior is shifting, with many buyers prioritizing FSD capabilities over specific vehicle models, stating that customers are "actually buying" the technology rather than just the car.

Future Production and Technology

Tesla announced that its Cybercab has begun production, marking a tangible step toward its robotaxi ambitions. Additionally, manufacturing lines for the Optimus Bot are being installed, with output expected to commence soon. Musk addressed speculation regarding traffic impacts, predicting that self-driving cars might initially worsen congestion by removing the "pain of driving yourself," thereby encouraging more vehicle usage. He also reaffirmed that FSD will eventually remember individual user preferences, including preferred parking spots at regular destinations.

Strategic Speculation

Speculation regarding a potential merger between Tesla Inc. and Space Exploration Technologies Corp. intensified following the earnings call. Musk cited "more and more overlap" between the two companies but deferred details to legal processes. Prediction market data from Kalshi indicated a 41% probability of a merger occurring before March 1, 2027, rising to 45% by May 2027. Gene Munster of Deepwater Asset Management raised his personal odds of a tie-up to 90% following the call. Meanwhile, competitor Waymo is reportedly weighing an exit from its partnership with Uber Technologies Inc., citing increasing competition and opposing lobbying efforts on state robotaxi policies. Waymo currently operates more than 3,800 vehicles across 10 cities following a $16 billion raise in February at a $126 billion valuation.