Elon Musk is no longer a trillionaire after a sharp decline in Tesla and SpaceX shares pushed his net worth below the $1 trillion mark, according to Forbes.
By the close of trading on Wednesday, Forbes estimated Musk's fortune at $970.2 billion, returning the entrepreneur to billionaire status less than two weeks after he became the first person in history to surpass a $1 trillion net worth.
The decline follows a broader market selloff that weighed heavily on technology stocks, particularly companies linked to the artificial intelligence boom.
Market turbulence hits world's richest person
Musk's wealth fell as investors reacted to growing concerns over potential interest rate increases by the US Federal Reserve and rising fears that AI-related valuations may have outpaced market fundamentals.
Technology companies with strong exposure to the AI sector were among the hardest hit during the selloff.
Alongside Tesla and SpaceX, companies including Alphabet, Google's parent company, and major chipmakers such as Samsung also came under pressure as investors reassessed technology valuations.
SpaceX IPO fuelled record-breaking wealth
Musk crossed the trillion-dollar milestone on 12 June following SpaceX's historic initial public offering.
The space technology and satellite company completed the largest IPO in history, raising $75 billion.
According to the publication:
- SpaceX shares debuted at $135 each.
- The stock climbed 19% within its first 24 hours of trading.
- Shares were trading at $154.35 on Wednesday.
The public listing dramatically increased Musk's personal wealth while making it more closely linked to fluctuations in SpaceX's share price.
Wealth remains tied to market performance
Although Musk's fortune has fallen below the trillion-dollar threshold, he remains the world's wealthiest individual.
Forbes estimates his wealth at $970.2 billion, well ahead of Larry Page, Google's co-founder, whose net worth stands at approximately $284 billion.
The publication also reported that Musk's wealth has increased by $338 billion since the beginning of the year, exceeding Page's entire estimated fortune.
Much of Musk's wealth is held in company shares and equity rather than liquid cash, meaning changes in market valuations can have an immediate impact on his estimated net worth.
A milestone that could return
Musk's exit from the trillionaire club may prove temporary.
With the majority of his wealth tied to Tesla and SpaceX, any rebound in their share prices could quickly restore his trillion-dollar valuation.
The episode also illustrates how closely personal wealth at the top of the global rich list is linked to stock market performance. Even record-breaking fortunes can fluctuate rapidly as investor sentiment shifts, particularly in sectors driven by technology and artificial intelligence.
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