Elon Musk, the globally renowned businessman, has lost his status as a trillionaire after technology sector stocks plunged heavily in recent days, dragging down shares of both SpaceX and Tesla.
Foreign news agencies reported that Elon Musk, the famous technology entrepreneur, lost his status as a "trillion-dollar billionaire" (Trillionaire) on Tuesday, 23 June 2024 GMT+7, less than two weeks after becoming the first person in history to reach this milestone following SpaceX's stock market debut.
According to data from Bloomberg's Billionaires Index, updated daily at 17:30 New York time, Musk's net worth was estimated at $957 billion on Tuesday, down from a record $1.11 trillion less than 14 days earlier.
This reversal followed sharp declines in SpaceX and Tesla shares, mirroring broad sell-offs in other technology companies, driven by increasing doubts about the long-term profitability of artificial intelligence (AI) technology.
However, despite losing a significant portion of his wealth, Musk remains the world's richest individual, maintaining a substantial lead over his nearest rivals.
Concerns over capital expenditures, AI infrastructure costs, and persistently high interest rates sparked a major sell-off in technology stocks, severely impacting leading tech giants such as Nvidia, Intel, and AMD.
SpaceX shares suffered the heaviest impact, plummeting over 30% from their mid-June peak, falling from about $225.64 to around $156 per share.
On Monday, 22 June 2024 GMT+7, a notably volatile day, SpaceX shares dropped 16%, wiping out approximately $240 billion of Musk's net worth. Tesla shares also fell nearly 6% the same day, further compounding his financial losses.
Musk's trillionaire status is particularly fragile because nearly all his wealth is tied up in just two companies: SpaceX, accounting for nearly 80% of his net worth, and Tesla, unlike typical billionaires who maintain diversified investment portfolios.
Market analysts noted that volatility after an IPO is normal for high-growth, high-value companies, though the magnitude of this swing reflects a stark clash between hype and reality.
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Source:bbc