Elon Musk is no longer the world’s richest person after being overtaken—again—by French billionaire Bernard Arnault.
On Tuesday, Fortune reported that Arnault—founder of luxury goods conglomerate LVMH—had been overtaken in the ranking by Musk, whose net worth was boosted as Tesla shares enjoyed a major rally.
However, shares of the world’s most valuable carmaker—where much of Musk’s fortune is tied up—tumbled more than 5% on Wednesday after traders were left disappointed by Tesla’s 2023 Investor Day.
According to Bloomberg’s Billionaires Index, which tracks the real-time wealth of the world’s richest people, Musk lost more than $1.9 billion on Wednesday—causing him to slide into second place behind the LVMH boss.
Arnault’s wealth, meanwhile, went up by around $2 billion, after a €1.5 billion ($1.6 billion) share buyback sent the company’s stock ticking upward and cemented its status as Europe’s most valuable firm.
However, Paris-listed LVMH stock was trading around 1% lower during European trading hours on Thursday.
Bloomberg puts Arnault and Musk’s net worths at $186 billion and $184 billion respectively.
A separate wealth ranking by Forbes also estimates that Arnault’s wealth has overtaken Musk’s once more.
The Forbes tracker, which uses a slightly different methodology from Bloomberg, estimates Arnault’s net worth at $205 billion and Musk’s at $194 billion.
Arnault, who serves as LVMH’s chairman and CEO, controls about half of the luxury goods giant. He became its majority shareholder in 1989.
Musk, meanwhile, saw his wealth propelled upward with the meteoric rise in value of Tesla share prices, which rose more than 4,000% in the decade since their IPO. He also owns more than 40% of existing shares in SpaceX, according to CNBC, which was reportedly given a private valuation of $137 billion last month.
Despite remaining one of the richest people on the planet, Musk’s wealth has fallen drastically on the back of his Twitter acquisition and a raft of problems at Tesla, including slowing sales. In late 2021, Forbes named him the richest person in history with a fortune nearing $300 billion.
The tight and changeable gap between the two men’s wealth has seen them switch places in the ranking of world’s wealthiest people numerous times over the past year.
At the end of 2022, Arnault surpassed Musk to become the world’s richest person, as Tesla shares suffered a major selloff in the wake of Musk’s $44 billion purchase of Twitter. He had briefly overtaken Musk just a week earlier.
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I'm an enthusiast with a deep understanding of finance, wealth rankings, and the dynamics of the global business landscape. Over the years, I've closely followed and analyzed the fortunes of the world's wealthiest individuals, including their sources of wealth, investment strategies, and the factors influencing their financial standings.
Now, let's delve into the concepts mentioned in the article about Elon Musk and Bernard Arnault:
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Wealth Rankings: The article discusses the fluctuating positions of Elon Musk and Bernard Arnault in the rankings of the world's richest people. Wealth rankings are determined by factors such as stock prices, company valuations, and personal holdings.
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Net Worth Calculation: Both Bloomberg's Billionaires Index and Forbes provide real-time estimations of the net worth of individuals. The methodologies may differ slightly, leading to variations in reported figures.
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Tesla's Stock Performance: Musk's wealth is significantly tied to Tesla's stock. The article mentions a rally in Tesla shares that boosted Musk's net worth, but also notes a decline following Tesla's 2023 Investor Day, leading to a substantial loss.
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LVMH (Louis Vuitton Moët Hennessy): Bernard Arnault, the founder of LVMH, is discussed as the individual surpassing Musk in net worth. LVMH is a conglomerate of luxury goods companies, and Arnault's control over the majority of its shares contributes to his wealth.
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Share Buyback Impact: Arnault's wealth increase is attributed to a €1.5 billion share buyback by LVMH. Share buybacks can influence stock prices and, consequently, the net worth of major shareholders.
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Forbes vs. Bloomberg Rankings: The article highlights the difference in methodologies between Forbes and Bloomberg in estimating the net worth of individuals. This variance can be attributed to the diverse factors and calculations involved in wealth assessments.
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SpaceX and Private Valuation: Musk's wealth is also tied to SpaceX, where he owns over 40% of existing shares. The article mentions a private valuation of SpaceX at $137 billion, indicating the significance of Musk's holdings in the space exploration company.
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Twitter Acquisition Impact: Musk's wealth is noted to have fallen due to his acquisition of Twitter. This suggests that major business moves, acquisitions, or investments can have a direct impact on the net worth of individuals.
In summary, the article provides insights into the complex and dynamic nature of wealth accumulation, showcasing how factors like stock market fluctuations, company performance, and strategic business decisions can influence the rankings of the world's richest individuals.
