Elon Musk was no longer a trillionaire by the close of markets on Wednesday, as plunging shares in Tesla and SpaceX dragged the tech magnate back to billionaire status. According to Forbes, Musk's net worth stood at $970.2 billion as of 4pm ET, down from over $1 trillion.
SpaceX IPO propelled Musk to trillionaire status
Musk had achieved trillionaire status on 12 June following SpaceX's historic initial public offering (IPO). The rocket, satellite, and AI company's stock market debut made Musk the first person with a net worth exceeding $1 trillion. His fortune hovered around that figure in the weeks after the IPO.
SpaceX raised $75 billion from its record-breaking IPO, with shares rising 19% from the initial price of $135 per share within 24 hours of going public. On Wednesday, SpaceX shares were listed at $154.35.
Global stock 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 and fears of an AI bubble rattled the market. Companies heavily linked to the AI boom, including Google's parent Alphabet and chipmakers such as Samsung, were hit especially hard.
Most of Musk's wealth is tied up in stock and equity, not cash he can quickly spend. Still, his fortune remains unprecedented in both size and the speed at which it grew.
Musk still world's richest person
Although no longer a trillionaire, Musk is easily still the world's richest person. According to Forbes, the next wealthiest billionaire is Google co-founder Larry Page, with a net worth of about $284 billion. Musk made more money than Page's entire fortune this year alone, increasing his net worth by $338 billion since January.
Market fluctuations mean Musk could regain his trillionaire status if Tesla or SpaceX shares rebound in the near future.
