Elon Musk loses trillionaire status as Tesla and SpaceX stocks tumble
Elon Musk has dropped below the trillion-dollar net worth mark after a sharp downturn in global technology stocks wiped out much of the recent gains tied to SpaceX’s blockbuster market debut, according to Bloomberg data.
The Bloomberg Billionaires Index valued Musk’s fortune at $957 billion on Tuesday, down from $1.11 trillion less than two weeks earlier, marking a rapid reversal after he briefly became the first person to reach trillionaire status.
The decline was driven by a broad sell-off in technology shares, with investor sentiment turning negative amid concerns over artificial intelligence valuations, rising capital expenditure, and persistent high interest rates.
SpaceX, which forms the largest portion of Musk’s wealth, saw its shares fall sharply from recent highs, dropping more than 30% from their mid-June peak of around $225 to approximately $156.
Tesla shares also weakened during the same period, adding further pressure to Musk’s net worth, which is heavily concentrated in the two companies.
Musk had first crossed the trillion-dollar threshold following SpaceX’s high-profile public listing on the Nasdaq on 12 June. The IPO, priced at $135 per share and opening at $150, valued the company at more than $1.77 trillion and briefly pushed Musk’s stake past the trillion-dollar mark.
Investor enthusiasm initially drove SpaceX shares to a peak of $225.64 by 16 June, lifting Musk’s estimated net worth to about $1.32 trillion.
However, the rally quickly reversed as markets turned cautious, triggering a broad technology sector decline that hit major companies including Nvidia, Intel, and AMD.
On a single volatile trading day, SpaceX shares fell 16%, erasing an estimated $240 billion from Musk’s paper wealth. Tesla stock also slipped nearly 6% shortly after, compounding losses.
Analysts say Musk’s wealth is unusually exposed due to its concentration in just two companies, with SpaceX accounting for roughly 80% of his total net worth and Tesla making up most of the remainder.
Experts note that volatility following major IPOs is common, particularly for high-growth companies, though the scale of recent movements highlights the tension between investor optimism and valuation concerns in the tech sector.
Some analysts also expect continued fluctuations as insider share-sale restrictions ease later this year, potentially adding further pressure on SpaceX stock, BBC reports.
Despite the setback, Musk remains the world’s richest individual, and analysts say even a modest rebound in SpaceX shares could quickly restore his trillion-dollar valuation.
