Chief Executive Officer (CEO) of Tesla, Elon Musk, is no longer a trillionaire after a sharp decline in SpaceX shares erased more than $150 billion from his fortune, ending a historic but short-lived stint above the $1 trillion mark.
The technology billionaire became the first person to surpass a net worth of $1 trillion earlier this month following SpaceX’s stock market debut and a strong rally in the company’s shares.
The blockbuster public offering pushed the valuation of the electric vehicle and space technology company beyond $2 trillion, driving Musk’s wealth to an estimated $1.11 trillion.
At the time, his fortune was estimated to be about five million times greater than the annual income of the average American family.
However, the milestone proved brief as SpaceX stock suffered a steep decline this week.
On Tuesday, shares closed around $156, Business Insider reported — “down more than 30% from an intraday peak of $225 on June 16.”
However, the outlet said it was still higher than when the shares began trading on June 12 at $150.
Despite dropping below the trillionaire threshold, Musk remains the world’s richest individual by a considerable margin.
According to Bloomberg’s Billionaires Index, his net worth currently stands at $957 billion.
Large swings in Musk’s wealth are not unusual, as most of his fortune is linked to the market performance of his companies.
His wealth has repeatedly risen and fallen alongside movements in the share prices of businesses in which he holds major stakes, including SpaceX.
Musk is also Tesla’s largest individual shareholder and chief executive, maintaining a substantial ownership interest in the electric vehicle and artificial intelligence firm.
Tesla has long been regarded as one of the most volatile major stocks on the market, contributing to the significant fluctuations in Musk’s personal fortune.
(Metro UK. Photo: Metro UK)