Elon Musk Makes an Ambitious $4BN Funding Push Weeks After His Fortune Lost Nearly $500BN

The past month has delivered an unprecedented blow to Elon Musk's personal fortune. Data from Benzinga shows his net worth plummeted by roughly 37 per cent in just 30 days, shedding nearly $500 billion (£376 billion) to leave him at around $832 billion (£625.67 billion), down from a peak of $1.32 trillion (£0.99 trillion).

Even as Bloomberg records the swiftest wealth collapse ever seen for an individual, Musk is turning his attention elsewhere, quietly drumming up capital for his least-discussed business.

Musk Pushes $4 Billion Bet on The Boring Company

Musk's tunnel-construction venture, The Boring Company, is reportedly seeking around $4 billion (£3.01 billion) in fresh capital, aiming for a valuation of nearly $20 billion (£15.04 billion) – more than three times the $5.7 billion (£4.29 billion) it was worth in 2022. Recent reports indicate the deal is still being negotiated, with terms potentially subject to change, while Musk himself has remained silent on the matter.

SpaceX and Tesla Drive Historic Wealth Loss

SpaceX served as the main catalyst for the massive financial decline. A failed Starship launch hastened a steep fall in SpaceX stock, which tumbled between 41 and 45 per cent over the month, wiping out more than $1 trillion (£0.75 trillion) in market value. The remaining damage came courtesy of Tesla.

Tesla posted $28.24 billion (£21.24 billion) in second-quarter revenue on 22 July 2026, yet adjusted earnings fell to just $0.33 (£0.25) per share, missing market expectations by 38.51 per cent. Free cash flow plunged into negative territory at $1.09 billion (£0.82 billion) following a sharp doubling of capital spending. By 24 July, shares had closed at $313.03 (£235.40), marking a 17.81 per cent weekly slide and a 30.39 per cent decline since the start of the year.

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', reinforcing plans for the EV giant to invest more than $25 billion (£18.80 billion) this year alongside debt arrangements of up to $30 billion (£22.56 billion).

Musk described the spending surge as 'one of the fastest industrial scale-ups in America' since the Second World War. Meanwhile, short sellers pocketed around $4 billion in a single day as Tesla shares tumbled.

Low-Profile Venture Seeks High Investor Confidence

A $4 billion private funding push for a tunnelling firm would usually make front-page news, but this deal has flown under the radar, fitting for a business whose defining trait has always been keeping quiet.

Beyond operating the Vegas Loop, the venture has pitched or unveiled proposals across Nashville, Dubai, Baltimore, Chicago and Los Angeles. Mid-2026 figures put its workforce at between 687 and 707 employees, though reported annual revenue paints an uncertain picture, with estimates ranging from $25 million (£18.80 million) to $500 million (£376 million).

Just 2.4 Miles Built Despite Lofty Valuation Goal

This lack of public attention can be seen in concrete terms. Out of the 615 pages in Walter Isaacson's biography of Musk, a mere three are dedicated to the tunnelling enterprise. Meanwhile, municipal ventures across California, Illinois, Texas, Florida and Maryland have quietly stalled or fallen apart with little explanation.

Even with Las Vegas approving a 68-mile (109.4-kilometre) subterranean network, seven years of operation have produced just 2.4 miles (3.86 kilometres) of functional tunnels. What makes this fundraising effort remarkable is the vast gulf between that modest progress and the immense faith being asked of investors.