On Tuesday, Elon Musk officially lost his spot in the exclusive trillionaire club, less than two weeks after the public debut of SpaceX briefly put him on top of the financial world. According to the daily Bloomberg Billionaires Index, Elon's net worth took a hit, dropping down to $957 billion (£727 billion) from the massive $1.11 trillion he was sitting on just 14 days ago. But let’s keep it 100: even with this drop, the man is still the richest dude on Earth by a long shot.

The drop happened because the whole tech market started panicking. Wall Street got hit with major doubts about whether all this expensive artificial intelligence (AI) hype is actually going to make money in the long run. High-interest rates didn't help either, causing big tech players like Nvidia, Intel, and AMD to take a serious beating.

Musk originally made history back on June 12 when his rocket company, SpaceX, made its highly anticipated debut on the Nasdaq exchange. The IPO was priced at $135 a share and opened up at $150, which valued the whole rocket and satellite company at over $1.77 trillion. Since Musk owns about 42% of SpaceX, that listing instantly pushed his paper net worth way past the $1 trillion mark.

By June 16, the hype was real. Investors kept buying in, pushing SpaceX shares to a peak of $225.64 and driving Musk's total net worth to a wild peak of $1.32 trillion.

But the stock market streets are cold. The rally didn't last, and SpaceX shares took the worst of the crash, dropping over 30% from their peak down to about $156. On one brutal Monday, June 22, a 16% single-day drop wiped out an estimated $240 billion from Musk's paper fortune in just 24 hours. To make matters worse, Tesla shares slid nearly 6% the very next day. Musk owns about 12% of Tesla.

This shows how Musk's bag is set up differently than other billionaires. Instead of playing it safe and spreading his money around, his wealth is almost entirely tied up in just two companies. SpaceX makes up nearly 80% of his entire net worth, with Tesla holding down the rest. If his companies take a hit, his whole net worth goes down with them.

Market experts say this kind of wild volatility is completely normal for hot new stocks. Danni Hewson, head of financial analysis at AJ Bell, broke it down: "For a stock like SpaceX, 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 something treated with clear eyes and patience, even when such huge numbers are involved."

Things might get even more interesting in late July when insider selling restrictions lift, meaning company workers and early investors can finally start selling off their shares. That might put more downward pressure on the stock.

But don't go thinking Elon is broke. All it takes is a small 6% recovery in SpaceX stock for him to get his trillionaire card back. He might just become the first recurring trillionaire in history.

Sources: * U.S. Securities and Exchange Commission * Board of Governors of the Federal Reserve System * Federal Reserve Bank of New York