Tech entrepreneur Elon Musk has lost his trillionaire status less than two weeks after becoming the first person in history to surpass the $1 trillion wealth mark, according to data from the Bloomberg Billionaires Index.
The Bloomberg Billionaires Index, which is updated daily at 17:30 in New York (22:30 BST), valued Musk’s fortune at $957 billion (£727 billion) on Tuesday, down sharply from the $1.11 trillion valuation recorded less than 14 days earlier.
The decline followed a steep fall in the share prices of SpaceX and Tesla amid a broader technology stock sell-off driven by growing investor concerns over the long-term profitability of artificial intelligence.
Despite the setback, Musk remains the world’s richest person, with a fortune that continues to far exceed those of his closest rivals.
Musk made history on June 12 following the highly anticipated public market debut of his rocket company, SpaceX, on the Nasdaq exchange.
The blockbuster initial public offering (IPO) was priced at $135 per share and opened at $150 when trading commenced, valuing the rocket and satellite company at more than $1.77 trillion. With an estimated 42 per cent ownership stake in SpaceX, Musk’s paper wealth instantly crossed the $1 trillion threshold.
Investor enthusiasm continued to drive the stock higher in the days that followed. By June 16, SpaceX shares had surged to a peak of $225.64, pushing Musk’s net worth to an estimated $1.32 trillion.
However, the rally proved short-lived.
Mounting concerns over rising capital expenditure, the cost of artificial intelligence infrastructure and persistently high interest rates sparked a broad-based retreat across technology stocks. Major companies including Nvidia, Intel and AMD suffered losses, but SpaceX was among the hardest hit.
Shares of SpaceX plunged more than 30 per cent from their mid-June high to trade at about $156. On June 22 alone, a 16 per cent single-day decline wiped an estimated $240 billion from Musk’s personal fortune.
The losses were compounded when shares of Tesla, Musk’s electric vehicle company, fell nearly six per cent a day later. Musk owns approximately 12 per cent of Tesla’s outstanding shares.
Analysts noted that Musk’s wealth is particularly exposed to market swings because of its heavy concentration in just two companies.
Unlike many other billionaires with diversified holdings, nearly 80 per cent of Musk’s fortune is tied to SpaceX, with the remainder largely linked to Tesla.
Commenting on the volatility, Danni Hewson, Head of Financial Analysis at AJ Bell, said investor sentiment had played a major role in the dramatic rise and fall of SpaceX’s valuation.
“For a stock like SpaceX, a lot of decision making might have been emotional and based on the anticipation of huge leaps forward in space exploration and utilisation, but investing should be something treated with clear eyes and patience, even when such huge numbers are involved,” Hewson said.
Market observers said the sharp fluctuations are not unusual following major public listings, particularly for high-growth companies carrying lofty valuations. However, they noted that the scale of the correction reflects the ongoing struggle between investor optimism and underlying market realities.
With restrictions on insider share sales expected to begin easing in late July, analysts said additional market pressure could emerge as company executives and early investors gradually gain the ability to sell portions of their holdings.
Nevertheless, Musk’s return to trillionaire status may not be far away. Analysts estimate that a modest six per cent recovery in SpaceX shares would be sufficient to push his net worth back above the $1 trillion mark, potentially making him the world’s first recurring trillionaire.
Boluwatife Enome
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