Musk's trillionaire crown lasts less than two weeks after SpaceX rout

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NEW YORK, June 25 -- Elon Musk has slipped below the US$1 trillion (RM4.2 trillion) net worth mark less than two weeks after becoming the world's first trillionaire, as a sharp retreat in technology stocks wiped hundreds of billions of dollars off his paper fortune.

According to the Bloomberg Billionaires Index, Musk's wealth stood at US$957 billion on Tuesday, down from about US$1.11 trillion shortly after SpaceX's blockbuster stock market debut earlier this month.

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.

The world's richest person first crossed the trillion-dollar threshold on June 12 after SpaceX debuted on the Nasdaq in one of the year's most closely watched public listings.

The rocket company was valued at more than US$1.7 trillion at its listing, with Musk's 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.

The rally, however, proved short-lived.

SpaceX shares have since fallen by more than 30 per cent from their mid-June high, while Tesla -- another major pillar of Musk's fortune -- has also come under pressure, extending losses across his business empire.

Bloomberg data showed a 16 per cent drop in SpaceX shares during Monday's trading alone erased an estimated US$240 billion from Musk's wealth on paper. Tesla shares then fell nearly six per cent the following day, adding to the decline.

Despite the steep fall, Musk remains comfortably the world's wealthiest individual.

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.

Unlike many other billionaires with diversified holdings, most of Musk's wealth is tied to the market value of just two companies -- SpaceX and Tesla -- making his net worth especially sensitive to share price movements.

AJ Bell head of financial analysis Danni Hewson said investors should remember that post-listing volatility is common, particularly for companies carrying high expectations.

"A 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," Hewson said, according to Bloomberg.

The coming weeks could bring more turbulence, with restrictions on insider share sales expected to begin easing from late July.

Even so, Musk's 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.