Elon Musk is no longer a trillionaire after a sharp decline in SpaceX shares reduced his net worth. However, despite the fall, he continues to hold the title of the world's richest person.
According to Bloomberg Billionaires Index data, Musk's current net worth stands at $946 billion. His wealth declined by $11.5 billion in the last 24 hours as SpaceX shares came under pressure.
The company's stock has fallen around 30 per cent from its peak after a strong debut on the Nasdaq earlier this month.
SpaceX IPO pushed wealth above $1 trillion
SpaceX made its market debut on June 12, with shares rising 19 per cent on the first trading day. The company attracted strong interest from retail investors, with Reuters reporting net buying of $117.6 million on the debut day.
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Musk, who owns 42 per cent of SpaceX, was the biggest beneficiary of the listing. Before the initial public offering, his net worth was estimated at around $700 billion.
The IPO valued SpaceX at more than $1.77 trillion. As the stock continued to climb, investor enthusiasm pushed the share price to a peak of $225.64 on June 16, per a report by NDTV.
At that stage, Musk's total fortune reportedly reached $1.32 trillion, reported NDTV.
Why Musk lost trillionaire status
The recent decline in SpaceX shares has significantly reduced Musk's wealth. Investors have become more cautious after the initial excitement surrounding the IPO faded.
Concerns over technology stocks and growing questions about the long-term profitability of artificial intelligence companies have also affected market sentiment.
According to the BBC, a 16 per cent drop in SpaceX shares on June 22 erased nearly $240 billion from Musk's personal fortune. A day later, Tesla shares fell nearly 6 per cent, adding to the decline.
Still the world's richest person
Despite losing his trillionaire status, Musk remains the wealthiest person in the world. Bloomberg data shows that his net worth has increased by $326 billion so far this year.
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Since a large portion of his wealth is linked to SpaceX and Tesla, future movements in the share prices of these companies are likely to continue influencing his overall fortune.
FAQs:
What is Elon Musk's current net worth?
According to Bloomberg, Elon Musk's net worth currently stands at $946 billion.
Why did Elon Musk lose his trillionaire status?
A decline in SpaceX shares and broader market volatility reduced his net worth below $1 trillion.
