NEW YORK, June 25 \u2014 Elon Musk has slipped below the US$1 trillion (RM4.2 trillion) net worth mark less than two weeks after becoming the world\u2019s first trillionaire, as a sharp retreat in technology stocks wiped hundreds of billions of dollars off his paper fortune.<\/p>\n
According to the Bloomberg Billionaires Index, Musk\u2019s wealth stood at US$957 billion on Tuesday, down from about US$1.11 trillion shortly after SpaceX\u2019s blockbuster stock market debut earlier this month.<\/p>\n
The reversal came as investors pulled back from high-flying technology stocks amid growing concerns over the long-term returns on artificial intelligence spending, persistent high interest rates and lofty market valuations.<\/p>\n
The world\u2019s richest person first crossed the trillion-dollar threshold on June 12 after SpaceX debuted on the Nasdaq in one of the year\u2019s most closely watched public listings.<\/p>\n
The rocket company was valued at more than US$1.7 trillion at its listing, with Musk\u2019s roughly 42 per cent stake sending his net worth into unprecedented territory. Strong buying in the days that followed pushed his fortune to an estimated peak of US$1.32 trillion.<\/p>\n
The rally, however, proved short-lived.<\/p>\n
SpaceX shares have since fallen by more than 30 per cent from their mid-June high, while Tesla \u2014 another major pillar of Musk\u2019s fortune \u2014 has also come under pressure, extending losses across his business empire.<\/p>\n
Bloomberg data showed a 16 per cent drop in SpaceX shares during Monday\u2019s trading alone erased an estimated US$240 billion from Musk\u2019s wealth on paper. Tesla shares then fell nearly six per cent the following day, adding to the decline.<\/p>\n
Despite the steep fall, Musk remains comfortably the world\u2019s wealthiest individual.<\/p>\n
Analysts say the dramatic swing highlights the risks of fortunes heavily concentrated in a small number of fast-growing companies, particularly after a major stock market listing.<\/p>\n
Unlike many other billionaires with diversified holdings, most of Musk\u2019s wealth is tied to the market value of just two companies \u2014 SpaceX and Tesla \u2014 making his net worth especially sensitive to share price movements.<\/p>\n
AJ Bell head of financial analysis Danni Hewson said investors should remember that post-listing volatility is common, particularly for companies carrying high expectations.<\/p>\n
\u201cA lot of decision making might have been emotional and based on the anticipation of huge leaps forward in space exploration and utilisation, but investing should be treated with clear eyes and patience, even when such huge numbers are involved,\u201d Hewson said, according to Bloomberg.<\/p>\n
The coming weeks could bring more turbulence, with restrictions on insider share sales expected to begin easing from late July.<\/p>\n
Even so, Musk\u2019s exit from the trillionaire club may prove temporary. A relatively modest rebound in SpaceX shares would be enough to push his paper fortune back above the 13-figure milestone.<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK, June 25 \u2014 Elon Musk has slipped below the US$1 trillion (RM4.2 trillion) net worth mark…\n","protected":false},"author":2,"featured_media":509980,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[147859,234112,350,85,46,2378,141,145,4688,348],"class_list":["post-509979","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-bloomberg-billionaires-index","tag-danni-hewson","tag-elon-musk","tag-il","tag-israel","tag-nasdaq","tag-science","tag-space","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/509979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=509979"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/509979\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/509980"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=509979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=509979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=509979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}