Elon Musk Loses Trillionaire Status After Tech Sell-Off
Elon Musk is no longer a trillionaire. Less than two weeks after becoming the world’s first person to reach that milestone, a broad tech sector sell-off erased hundreds of billions from his fortune. By market close on Wednesday, June 24, Forbes estimated Musk’s net worth at $970.2 billion, while the Bloomberg Billionaires Index pegged it at $957 billion.
Despite the decline, Musk remains the world’s richest person by a staggering margin. His fortune still exceeds that of second-ranked Larry Page ($284–$297 billion) by more than $650 billion — a gap larger than Jeff Bezos’s entire net worth.
The Rise and Fall of a Trillionaire
Musk achieved trillionaire status on June 12, 2026, when SpaceX debuted on the stock market in what was the largest IPO in history, raising $75 billion. Shares opened at $150, up from the IPO price of $135, valuing the company at approximately $1.77 trillion. Musk, who owns roughly 38–42% of SpaceX, saw his net worth surge past $1 trillion overnight.
The gains accelerated over the following days. By June 16, SpaceX shares had peaked at $225.64, pushing Musk’s net worth to an all-time high of $1.32–$1.45 trillion. At that point, SpaceX briefly ranked ahead of Amazon and Microsoft as the fourth-largest company in the world by market capitalization.
But the rally proved short-lived. SpaceX announced a $60 billion all-stock acquisition of AI coding startup Cursor, a move that diluted the company’s IPO valuation by about 3.4% and spooked investors. Morningstar criticized the deal as a “sizable dilution” of shares and maintained a bearish stance on the stock.
The Sell-Off Accelerates
On June 22, SpaceX shares plunged 16.4% to under $155, wiping approximately $240 billion from Musk’s fortune in a single day. Fox Business reported that Tesla shares fell nearly 6% the following day, compounding the losses.
By June 24, SpaceX shares had fallen more than 30% from their June 16 peak, settling near $154–$156. The company’s market value dropped from approximately $2.99 trillion at its peak to around $2 trillion — a loss of roughly $928 billion in market capitalization.
The broader tech sell-off was driven by multiple factors. Investor concerns that the Federal Reserve might raise interest rates weighed on high-growth tech stocks, while fears of an AI bubble prompted a sector rotation from AI winners to industrial stocks. MSCI, one of the world’s largest stock market index providers, awarded SpaceX its lowest ESG rating (CCC), declaring the company was “lagging its industry” on environmental, social, and governance risks.
A Fortune Built on Two Stocks
The vast majority of Musk’s wealth is tied up in equity and stock holdings rather than liquid cash. According to Yahoo Finance, his SpaceX stake was valued at $744 billion as of June 24, representing approximately 80% of his total fortune. His Tesla stake was worth roughly $158 billion. This extreme concentration makes his net worth highly sensitive to fluctuations in just two stocks.
SpaceX also faces significant financial challenges. Documents filed with regulators before the IPO disclosed that the company ran a $4.9 billion deficit in 2025, with its AI division alone burning through $12.7 billion in capital spending. The company announced it would issue bonds to refinance a short-term loan without diluting existing shareholders.
Analysis: What This Means
Musk’s rapid rise and fall as a trillionaire highlights the extreme volatility that comes with concentrated wealth tied to high-growth tech stocks. The episode has intensified the debate about whether AI stocks are in a bubble, with SpaceX serving as a case study for both sides of the argument.
Some analysts, including Swissquote analyst Ipek Ozkardeskaya, have suggested SpaceX could be the latest meme stock, arguing investors are buying shares “in the expectation that others will buy too and push the price higher.” Others point to SpaceX’s fundamental strengths — its dominance in commercial launch services, its role as a key NASA and U.S. government contractor, and its pioneering reusable rocket technology — as reasons for long-term confidence.
The approaching deadline when early investors and employees can sell their shares represents a significant risk. If insiders choose to cash out, it could put further downward pressure on SpaceX’s stock price.
What’s Next for Musk
Market fluctuations mean it is possible that Musk could regain his trillionaire status if either Tesla or SpaceX shares rebound. A $6.3 billion computing agreement with AI startup Reflection AI, starting July 1, could provide a catalyst if it demonstrates tangible revenue from SpaceX’s AI investments. The company’s decision to issue bonds rather than dilute equity suggests management is trying to protect shareholder value, which could be viewed positively by the market.
Despite losing the trillionaire title, Musk’s financial position remains historically unprecedented. He added $338 billion to his fortune in 2026 alone — more than the total wealth of the world’s second-richest person. Whether he reclaims the trillionaire milestone will depend on market sentiment, Federal Reserve policy, and the performance of the two companies that built his fortune.