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Technology entrepreneur Elon Musk achieved the feat of becoming the world's first trillionaire after the debut of Space X on the stock market. However, he could not maintain that status. Less than two weeks after becoming the owner of a trillion-dollar fortune, the world's richest person has fallen off the list of trillionaires again. According to the Bloomberg Billionaires Index, Musk's total assets stood at $957 billion on June 23, US time, which was about $1.11 trillion two weeks ago. This major blow to his wealth came as the share prices of Space X and Tesla fell significantly.
As investors doubted the long-term profitability of the AI sector, there was widespread selling pressure on technology sector stocks. This also affected the companies owned by Musk. Musk made history with the much-discussed stock market debut of Space X on Nasdaq on June 12.
Although the company's share price was set at $135, trading started at $150. This gave SpaceX a market value of around $1.77 trillion. As Musk owns around 42 percent of the company's shares, his personal wealth crossed the $1 trillion mark. After the debut, SpaceX's share price reached $225.64 on June 16 due to strong investor interest. At that time, Musk's total wealth increased to around $1.32 trillion.
However, that rise did not last long. As concerns about overinvestment in the technology sector, AI infrastructure costs and high interest rates increased, there was a major selling pressure in the market. As a result, along with technology giants like Nvidia, Intel and AMD, SpaceX also suffered a major setback. SpaceX's share price fell more than 30 percent from its peak in mid-June to around $156. On June 22 alone, the share price fell by 16 percent, reducing Musk's personal wealth by an estimated $240 billion. Then, Tesla shares also fell by about 6 percent, further increasing the loss. Musk owns about 12 percent of Tesla's shares.
According to analysts, the biggest weakness of Musk's wealth is that it is mainly dependent on the shares of two companies. About 80 percent of his total assets are related to Space X. And the rest is invested in Tesla. As a result, the fluctuations in the shares of these two companies directly have a major impact on his wealth. However, market analysts believe that such volatility is not uncommon for newly listed high-value companies on the stock market. Many believe that if Space X's share price can be restored by six percent, Elon Musk can once again become the owner of trillion-dollar assets.