American business tycoon and SpaceX and Tesla founder Elon Musk has lost his trillionaire status just two weeks after achieving the milestone, as changes in SpaceX’s valuation and new restrictions on his Tesla shares reduced his net worth.

A few weeks ago, Mr Musk became the world’s first trillionaire following the impressive debut of SpaceX on the Nasdaq stock exchange, with the stock climbing by 40 per cent and pushing the businessman’s net worth to an estimated value of over $1.1 trillion.

According to Forbes on Tuesday, Mr Musk’s net worth declined by 31 per cent as Tesla recorded significant losses, with investors pulling back from the company amid rising valuations in the artificial intelligence sector.

His current net worth is estimated at $962 billion as of Tuesday. Despite the decline in his wealth, he remains the world’s richest man, far ahead of other wealthy individuals globally, with his fortune still exceeding that of the next-richest people on major wealth rankings.

Tesla’s contribution to the decline in his wealth saw Mr Musk give up about $7.1 billion worth of Tesla shares to finance the exercise cost of stock options awarded under his 2018 compensation package.

The compensation package was an agreement that allowed the billionaire to receive several stock options worth billions of dollars if the company met specific growth targets.

The package was initially rejected by a Delaware court in 2024 but was later reinstated by the Delaware Supreme Court in late 2025.

Under a revised agreement reached between Tesla and Mr Musk in April, the stock options are converted into restricted shares when exercised.

Elon Musk could lose those shares if he does not remain Tesla’s chief executive officer or a senior operations executive until January 2028.