Elon Musk loses trillionaire crown as tech rout erases $360 billion in two weeks

Tech entrepreneur Elon Musk has relinquished his trillionaire status just 12 days after achieving the milestone, as a brutal sell-off in technology and space-equity markets wiped roughly $363 billion from his personal fortune.

According to the Bloomberg Billionaires Index, Musk’s net worth fell to $957 billion on Tuesday, plunging from the $1.32 trillion peak reached on June 16. The spectacular reversal follows the historic public debut of his rocket company, SpaceX, which originally pushed the billionaire’s paper fortune beyond the 13-figure mark on June 12.

A Historic IPO Turns Sour

Musk made financial history on June 12 with the long-anticipated initial public offering of SpaceX on the Nasdaq exchange. Priced at $135 per share and opening at $150, the blockbuster listing immediately valued the rocket and satellite giant at over $1.77 trillion. Given that Musk holds an approximate 42% stake in SpaceX, the valuation instantly propelled his net worth past the $1 trillion threshold.

Investor enthusiasm continued to build through the following weekend. By June 16, surging demand drove SpaceX shares to an intraday peak of $225.64, elevating Musk’s total net worth to a staggering $1.32 trillion.

However, the euphoria proved short-lived. Mounting concerns over artificial intelligence infrastructure costs, sustained high interest rates, and massive capital expenditures by major technology firms triggered a widespread tech rout. The Nasdaq Composite suffered heavy losses, with AI-darling Nvidia, alongside chipmakers Intel and AMD, sustaining particularly sharp declines.

SpaceX Bears the Brunt

SpaceX shares bore the heaviest burden of the market correction. The stock plummeted more than 30% from its mid-June peak, currently hovering near $156. The downturn accelerated dramatically on Monday, June 22, when a single 16% intraday plunge erased an estimated $240 billion from Musk’s balance sheet in mere hours.

The financial damage was compounded the following day when shares of his electric vehicle venture, Tesla, slid by nearly 6%. Musk currently owns approximately 12% of Tesla’s outstanding stock. The combined drop reduced his net worth below the $1 trillion mark on Tuesday.

Extreme Wealth Concentration

Market analysts point out that Musk’s trillionaire status is uniquely fragile due to the extreme concentration of his wealth. While most traditional billionaires hold diversified portfolios across real estate, private equity, and various public stocks, roughly 80% of Musk’s net worth is tied directly to his equity in SpaceX, with Tesla accounting for the majority of the remainder.

Despite the steep decline, Musk remains the world’s wealthiest individual, with his $957 billion net worth still dwarfing second-place Jeff Bezos by nearly $200 billion.

“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,” said Danni Hewson, head of financial analysis at AJ Bell. “But investing should be treated with clear eyes and patience, even when such huge numbers are involved. The volatile nature of post-IPO growth stocks can lead to wild swings that are often detached from near-term fundamentals.”

The Road Ahead

Market pressure may persist in the coming weeks. Lock-up restrictions preventing company insiders from selling their shares are set to expire in late July, which could trigger an additional wave of supply.

However, a silver lining remains for Musk. A modest 6% recovery in SpaceX’s stock price, back to approximately $165 per share, would instantly restore his net worth beyond the trillion-dollar mark. Given the sector’s volatility, he may soon become the world’s first “recurring trillionaire”—alternately breaking and losing the record with each market tremor.