(Web Desk) - Tech billionaire Elon Musk is no longer a trillionaire after a sharp decline in SpaceX's stock price and new restrictions imposed on a significant portion of his Tesla holdings reduced his net worth below the $1 trillion mark.
Musk became the first person in history to surpass a net worth of $1 trillion after SpaceX went public on June 12, lifting his fortune to an estimated $1.1 trillion. His wealth briefly peaked at around $1.45 trillion on June 16 as SpaceX shares surged 40% to a record high.
However, a subsequent 31% drop in SpaceX stock erased a substantial portion of those gains. Combined with restrictions affecting approximately $116 billion worth of Tesla shares, Musk's estimated net worth fell to $962 billion by Tuesday, according to Forbes.
The decline also follows Musk's decision last week to surrender $7.1 billion worth of Tesla shares to cover the exercise cost of stock options awarded under his 2018 chief executive compensation package.
The compensation plan had been invalidated by a Delaware court in 2024 but was later reinstated by the Delaware Supreme Court in 2025. Following the ruling, Tesla and Musk reached a new agreement in April under which the exercised options were converted into restricted stock.
Under the revised arrangement, Musk must remain at Tesla until January 2028 as chief executive officer or in a senior executive role overseeing product development or operations. Failure to meet those conditions could result in the forfeiture of the restricted shares.
Despite the decline, Musk remains the world's richest person, with the majority of his fortune tied to his stakes in Tesla and SpaceX.