Elon Musk has lost his status as the world's first trillionaire after a significant tech sector sell-off erased billions from his fortune, less than two weeks after he reached the milestone. According to the Bloomberg Billionaires Index, Musk's net worth dropped to $946 billion as of Wednesday, down from approximately $1.11 trillion less than 14 days earlier. This decline was driven by falling shares of both SpaceX and Tesla, as investors grew more cautious about the long-term profitability of artificial intelligence [1].
SpaceX's initial public offering (IPO) was priced at $135 per share and began trading at $150 on June 12, valuing the company at over $1.77 trillion. Musk, who owns about 42% of SpaceX, saw his net worth surge above $1 trillion following the IPO. SpaceX shares subsequently climbed to $225.64 on June 16, temporarily boosting Musk's net worth to around $1.32 trillion. However, these gains were short-lived as SpaceX shares fell more than 30% from their June peak during the tech sell-off. On June 22, SpaceX stock dropped 16%, wiping about $240 billion from Musk's fortune, while Tesla shares fell nearly 6% the following day, compounding the losses [1].
Despite the sharp decline, Musk remains the world's richest person by a wide margin. As of Wednesday, Larry Page was ranked second with a net worth of $296 billion, followed by Sergey Brin at $275 billion, Jeff Bezos at $257 billion, and Michael Dell at $223 billion, according to the Bloomberg Billionaires Index [1].
SpaceX, founded by Musk in 2002, has become the world's largest space company and a dominant force in commercial launch services, pioneering reusable rocket technology and serving as a key contractor for NASA and the U.S. government [1].
CONCLUSION
Elon Musk's net worth has fallen below the $1 trillion mark due to a sharp decline in SpaceX and Tesla shares amid a broader tech sell-off. While the losses are significant, Musk continues to lead the global wealth rankings by a substantial margin. The market reaction underscores investor caution regarding the tech sector's long-term profitability.