Tesla and SpaceX Chief Executive Officer Elon Musk has lost his trillionaire status following a sharp decline in the value of SpaceX shares.

According to the Bloomberg Billionaires Index, Musk’s net worth fell to $946 billion on Thursday, down from more than $1 trillion recorded on June 12 after SpaceX’s initial public offering (IPO).

Musk became the world’s first trillionaire after SpaceX’s successful stock market debut, with his fortune rising from about $707 billion to over $1.1 trillion within days.

However, the sustained decline in the company’s share price has significantly reduced his wealth.

Forbes also reported that Musk’s net worth dropped from $1.45 trillion to just under $1.1 trillion after SpaceX shares lost nearly 30 per cent of their value from their June 16 peak.

SpaceX shares had surged by as much as 67 per cent during the first three days of trading following the record-breaking IPO, which valued the company at more than $1.8 trillion.

Since then, the stock has recorded three consecutive trading losses, reducing the company’s market value from a peak of about $2.9 trillion to roughly $2 trillion.

Musk’s fortune is largely derived from his 38 per cent stake in SpaceX, his 11 per cent stake in Tesla, and investments in several other companies.

The decline accelerated after SpaceX announced plans to issue its first investment-grade bond, seeking to raise at least $20 billion to finance its artificial intelligence projects.

As of Thursday, SpaceX shares were trading at about $155, down from their post-IPO high of $225.64, but still above the company’s listing price of $135.