Elon Musk was no longer a trillionaire by the time markets closed on Wednesday, as plunging shares in Tesla and SpaceX dragged the tech magnate down to billionaire status. According to Forbes, Musk's net worth stood at $970.2 billion as of 4pm ET, a drop from the $1 trillion-plus mark he reached just weeks ago.
Historic IPO and Brief Trillionaire Status
Musk achieved trillionaire status on 12 June after SpaceX's historic initial public offering. The rocket, satellite and AI company's debut on the stock market made Musk the first person with a net worth exceeding $1 trillion. His fortune hovered around that figure in the weeks following the IPO, buoyed by investor enthusiasm for SpaceX's growth prospects.
Global Selloff Hits Tech Stocks
A global stock selloff this week led to sharp declines for major tech stocks, dealing a blow to Musk's wealth. Investor concerns that the Federal Reserve might raise interest rates, coupled with looming fears of an AI bubble, rattled the market. Companies heavily linked to the AI boom, including Google's parent Alphabet and chipmakers like Samsung, were hit especially hard.
The SpaceX IPO, the largest in history, immediately vaulted Musk's wealth while tying it closely to the company's stock price. SpaceX raised $75 billion from its record-breaking IPO, and its shares rose 19% from the initial price of $135 within 24 hours. By Wednesday, SpaceX stock was listed at $154.35, reflecting the broader market downturn.
Musk's Wealth Tied to Stock and Equity
Most of Musk's wealth is tied up in stock and equity, not cash he can quickly spend. Despite the drop, his fortune remains unprecedented in both size and the speed at which it grew. Market fluctuations mean it is possible Musk could regain trillionaire status if Tesla or SpaceX shares rebound in the near future.
Still the World's Richest Person
Although no longer a trillionaire, Musk easily remains the world's richest person. The next wealthiest billionaire is Google co-founder Larry Page, with a net worth of about $284 billion, according to Forbes. Musk made more money than Page's entire fortune this year alone, increasing his net worth by $338 billion since January.
