Elon Musk is no longer a trillionaire after sharp declines in SpaceX and Tesla shares wiped out more than $150 billion from his fortune and dragged his net worth below the $1 trillion mark.
According to Bloomberg’s Billionaires Index, Musk’s wealth stood at $957 billion on Wednesday, down from the historic milestone he crossed earlier this month after SpaceX’s blockbuster initial public offering propelled him into the trillionaire club.
The reversal comes amid a broad selloff in technology stocks and growing investor concerns over the sustainability of massive spending on artificial intelligence and ambitious long-term projects.
SpaceX loses nearly $1 trillion in value
SpaceX had become the centrepiece of Musk’s fortune after its June 12 market debut.
The rocket company was briefly valued at nearly $3 trillion as retail investors flocked to the stock, attracted by Musk’s vision of building space-based data centres and eventually establishing a human presence on Mars.
However, the rally has cooled rapidly.
SpaceX shares plunged 16% on Monday and ended the session on Tuesday at $156, only modestly above their opening trading price of $150 and well below the record high of $225 reached just a week ago.
The IPO itself was priced at $135 a share, meaning early investors remain in profit despite the recent declines.
The weakness has cut SpaceX’s market capitalisation from a peak of around $2.99 trillion to just over $2 trillion, erasing almost $1 trillion in value in little more than a week.
Monday’s decline alone erased more than $152 billion from Musk’s net worth, according to Forbes estimates.
Debate over SpaceX’s valuation continues
The decline has coincided with increasing scrutiny of SpaceX’s valuation and its long-term business plans.
Ahead of its public listing, the company’s regulatory filings revealed that it posted a loss of $4.9 billion in 2025.
Its artificial intelligence segment also incurred capital expenditures of $12.7 billion, underscoring the enormous financial commitments required to pursue its expansion plans.
Some investors have begun questioning whether the company’s moonshot projects can justify its valuation.
The upcoming expiry of the lockup period, when early investors and insiders are permitted to sell their shares, is also emerging as a key test for the stock.
Analysts say volatility is usual for newly listed companies
Danni Hewson, head of financial analysis at AJ Bell, said the recent volatility was not unusual for newly listed companies.
“SpaceX might have seemed charmed after its record-breaking IPO and subsequent rally, but it’s come down to earth with a bump over the past couple of days, with shares at one point falling below the opening price on its market debut.”
She noted that newly public companies often experience periods of volatility as investors reassess valuations and decide whether to lock in gains.
“Post-IPO stocks often enter a period of volatility as the market gets to grips with the new entrant, some investors rush to cash out, and others assess at what price they are willing to jump in.”
“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.”
Despite the recent decline, SpaceX remains by far Musk’s most valuable asset.
According to Bloomberg data, his SpaceX holdings are worth about $744 billion and account for nearly 80% of his total net worth.
Tesla’s weakness compounds losses
Musk’s fortune has also been hit by weakness in Tesla shares.
The electric vehicle maker fell 5.8% on Monday as technology stocks broadly sold off amid concerns over elevated valuations and heavy spending on artificial intelligence infrastructure.
His stake in TSLA is currently valued at approximately $158 billion.
Like all market fortunes, Musk’s wealth remains closely tied to the performance of his companies and could rebound if SpaceX shares recover.
Despite dropping below the $1 trillion threshold, Musk remains comfortably the world’s richest person.
Bloomberg estimates that his lead over the second-richest individual, Google co-founder Larry Page, is roughly $660 billion, a gap larger than the entire fortunes of several of the world’s wealthiest individuals combined.
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