Elon Musk’s net worth has fallen below the trillion-dollar mark following a significant decline in tech stock valuations earlier this week. The drop erased approximately $500 billion from Musk’s fortune, which had recently surged to historic levels after the successful public listing of his aerospace company, SpaceX.

Musk became the world’s first person to surpass a net worth of $1 trillion on June 12, a milestone driven largely by his 38% stake in SpaceX and an 11% holding in Tesla. However, a sell-off in technology shares across Wall Street has sharply reduced his wealth. According to data compiled by Bloomberg, Musk’s net worth currently stands at about $957.1 billion. Forbes had estimated his peak valuation at $1.45 trillion just last week.

The decline in Musk’s wealth over the past week alone amounts to more than the total net worth of Larry Page, the world’s second-richest individual, whose fortune is estimated at just under $297 billion. Tesla, where Musk holds a significant stake, was notably affected, with its stock shedding 5.8% on Tuesday, resulting in a loss of over $89 billion in market value. Meanwhile, Nvidia, the most valuable public company by market capitalization, saw its shares fall 4.1% amid the broader downturn.

Investor caution surrounding artificial intelligence (AI) firms has also contributed to the market pullback. The semiconductor company Micron, a major player in AI chip production valued at over $1 trillion, experienced a 13.2% drop on Tuesday ahead of its third-quarter earnings report. Analysts at Goldman Sachs warned that stocks linked to AI have become vulnerable to potential declines in spending by large technology companies, suggesting possible continued volatility in the sector.

Ben McKeown, investment manager at Dowgate Wealth, highlighted the inherent risks Musk faces due to his concentrated holdings. “The old adage is, you concentrate to build wealth and diversify to keep it. Musk is the most extreme example of this,” McKeown said, emphasizing the volatility that can arise when an investor’s assets are focused in a few companies.

Musk’s wealth remains heavily tied to Tesla and SpaceX, as well as stakes in several other ventures. The recent market turbulence underscores the sensitivity of his fortune to fluctuations in the tech industry and investor sentiment toward high-growth stocks.