Elon Musk’s run as the world’s first trillionaire has come to an end after a sharp decline in the value of his holdings.
According to Forbes, Musk’s estimated net worth fell to $962 billion on Tuesday, down from a reported peak of $1.45 trillion on June 16. The decline was driven by two main factors;
A significant drop in the value of his stake in SpaceX following a market correction.
New restrictions applied to a large portion of his holdings in Tesla.
Earlier in June, Musk’s net worth surged as SpaceX’s market debut boosted the value of his aerospace company stake. The rally briefly pushed his fortune above the $1 trillion mark and later to a reported high of $1.45 trillion.
A revised agreement tied to Musk’s Tesla compensation package also affected Forbes’ valuation. Under the arrangement, a substantial amount of Tesla stock is subject to restrictions and may be forfeited if Musk does not remain in a qualifying leadership role through January 2028.
As a result, Forbes discounted the value of those shares when calculating his wealth.
The combination of the SpaceX pullback and the reassessment of his restricted Tesla shares reduced Musk’s estimated net worth below $1 trillion.
