Elon Musk Loses Trillionaire Status As SpaceX Rally Cools, Wiping Out $363 Billion

Elon Musk has lost his status as the world's first trillionaire less than two weeks after reaching the historic milestone, following a sharp decline in the value of SpaceX shares. According to the Bloomberg Billionaires Index, Musk's net worth has fallen to an estimated $957 billion from a peak of $1.32 trillion recorded on June 16, representing a decline of approximately $363 billion. Despite the setback, Musk remains the world's wealthiest individual by a significant margin.

The dramatic rise in Musk's fortune was fueled by SpaceX's blockbuster Nasdaq debut on June 12. The aerospace and satellite company raised $75 billion in what became the largest initial public offering in history, valuing the company at nearly $1.77 trillion. Investor enthusiasm drove SpaceX shares to a high of $225.64, briefly pushing the company's valuation close to $2 trillion and helping Musk become the first person ever to surpass the $1 trillion net-worth threshold.

However, the rally has since reversed sharply. SpaceX shares have retreated to around $156, marking a decline of roughly 31 percent from their peak. The correction accelerated earlier this week when the stock dropped more than 16 percent in a single trading session, erasing nearly $400 billion in market value. The sell-off significantly reduced the value of Musk's substantial stake in the company, leading to the sharp contraction in his personal fortune.

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Market pressure intensified after SpaceX announced plans to raise $25 billion through its first investment-grade bond offering. The company said the funds would be used to support artificial intelligence initiatives and refinance debt associated with Musk's broader network of businesses, including social media platform X and artificial intelligence venture xAI. Credit-rating agency S&P Global Ratings has projected that SpaceX could remain cash-flow negative through 2029 as it continues investing heavily in growth and expansion.

Musk's wealth has also been affected by weakness in Tesla shares. The electric vehicle manufacturer's stock has declined more than 4 percent since June 16 and remains lower for the year overall. Because a significant portion of Musk's wealth is tied to his holdings in Tesla and SpaceX, fluctuations in the market value of these companies have a direct impact on his net worth.

Even after the decline, Musk remains comfortably ahead of other billionaires. Bloomberg estimates the fortunes of Google co-founders Larry Page and Sergey Brin at approximately $297 billion and $276 billion, respectively. Investors are now closely monitoring SpaceX's next phase, particularly the possibility of insider share sales as lockup restrictions begin to ease later this year, a development that could influence the company's stock performance and Musk's wealth trajectory.

Also Read: Elon Musk Records Historic $336 Billion One-Day Wealth Jump Amid Massive Market Rally