Elon Musk, the worlds richest person and a prominent supporter of Dogecoin, has fallen out of the exclusive trillionaire club as his net worth dropped below $1 trillion, according to the Bloomberg Billionaires Index. The decline comes as shares of SpaceX, his most valuable private holding, have fallen significantly from their post-IPO peak.
SpaceX stock has declined sharply since its public listing earlier this year, losing more than half its value at one point amid broader market turbulence in the technology sector. The companys shares briefly fell below their initial public offering price this week, eroding a substantial portion of Musks personal wealth, which is heavily concentrated in his holdings of SpaceX, Tesla, and xAI.
Musk had briefly entered trillionaire territory following Spacexs IPO in June, which valued the company at roughly $2 trillion and made it one of the most valuable publicly traded companies in the United States. The stock surged initially as retail and institutional investors rushed to gain exposure to the rocket company, but the gains proved short-lived.
Several factors have contributed to the decline. Spacexs most recent Starship test flight was scrubbed after engine problems, raising questions about the companys launch cadence. Additionally, the broader sell-off in technology and AI-related stocks has weighed on Spacexs valuation, as investors reassess the premium they are willing to pay for growth-oriented companies.
Musks net worth is also tied to Tesla, which has faced its own challenges this year, including declining sales in key markets and increasing competition from Chinese electric vehicle manufacturers. Meanwhile, his AI company xAI, which operates the Grok chatbot platform, has faced scrutiny over data privacy practices.
The decline marks a sharp reversal for Musk, who had been celebrating his trillionaire status on social media just weeks ago. Despite the setback, he remains the wealthiest person in the world by a wide margin, with a net worth still exceeding $900 billion according to most estimates.
This article was adapted from U.Today. Read the original here.
