Reportedly, Tesla and SpaceX have seen their combined market capitalization evaporate by $1.19 trillion since June, falling from $3.94 trillion to $2.75 trillion. Of this, SpaceX's market cap has plummeted by nearly $1 trillion in the past six weeks, with its stock price dropping by 40%; Tesla's market cap has evaporated by $220 billion, and its stock price has fallen by nearly 20% since June 19.

The challenges faced by both companies primarily revolve around the development and acceleration of artificial intelligence (AI). Tesla plans to invest $25 billion in capital expenditures and borrow $30 billion this year, and its stock price fell by 18% in the week following its recent earnings release, marking its worst performance since 2022. SpaceX, on the other hand, hopes to serve the $26.5 trillion AI market by establishing orbital data centers, but Goldman Sachs projects it will have a negative free cash flow of $105 billion in 2029.