Tech billionaire, Elon Musk, has fallen below the $1 trillion net worth threshold, less than two weeks after becoming the first person in history to reach the milestone, according to figures from the Bloomberg Billionaires Index.
Bloomberg’s daily wealth rankings, updated at 5:30 p.m. in New York, estimated Musk’s fortune at $957 billion (£727 billion) on Tuesday, a sharp decline from the $1.11 trillion recorded earlier this month.
The drop comes amid a broad sell-off in technology stocks, driven by investor concerns over artificial intelligence spending, rising infrastructure costs, and uncertainty about future profits in the sector.
Despite the setback, Musk remains comfortably the wealthiest person in the world, maintaining a significant lead over other billionaires.
The Tesla and SpaceX chief crossed the trillion-dollar mark on June 12 after SpaceX made its long-awaited debut on the Nasdaq stock exchange.
The rocket company’s initial public offering was priced at $135 per share before opening trading at $150. The listing gave SpaceX a valuation exceeding $1.77 trillion, instantly boosting Musk’s wealth above $1 trillion thanks to his roughly 42% ownership stake in the company.
Investor excitement initially pushed SpaceX shares even higher, reaching a peak of $225.64 on June 16. At that point, Musk’s net worth climbed to an estimated $1.32 trillion.
However, the rally soon lost momentum.
Technology stocks came under pressure as investors reassessed lofty valuations and growing costs linked to AI development.
Major firms across the sector experienced declines, and SpaceX was among the hardest hit.
The company’s shares have since fallen by more than 30% from their mid-June high, trading at approximately $156.
A particularly steep decline on June 22 saw SpaceX shares tumble 16% in a single session, wiping out an estimated $240 billion from Musk’s paper wealth.
At the same time, Tesla stock also weakened, dropping nearly 6% the following day. Musk owns around 12% of the electric vehicle maker, further contributing to the reduction in his fortune.
Analysts note that Musk’s wealth is especially sensitive to market swings because it is heavily concentrated in just two businesses.
SpaceX accounts for nearly four-fifths of his net worth, while Tesla makes up most of the remainder.
Although dramatic, the volatility is not unusual for newly listed, high-growth companies, market observers say.
“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,” said Danni Hewson, head of financial analysis at AJ Bell.
Additional pressure could emerge in late July when restrictions preventing insiders from selling shares begin to ease.
Even so, Musk’s return to trillionaire status may not be far away. Analysts estimate that a recovery of just 6% in SpaceX shares would be enough to push his wealth back above the $1 trillion mark, potentially making him the world’s first repeat trillionaire.
