New York CNN Business —
Elon Musk is no longer the world’s richest person, according to Forbes.
On Thursday, Musk dropped to the second spot on Forbes’ list of “Real-Time Billionaires,” putting the Twitter and Tesla CEO behind Bernard Arnault, CEO of French luxury brand LVMH, maker of Louis Vuitton luxury goods and Hennessy cognac. Forbes now pins Musk’s wealth at $183.6 billion, slightly below Arnault’s wealth estimated at $186.2 billion.
Forbes noted on Wednesday that Arnault’s ascent is because LVMH’s stock is mostly flat this year, while Musk has experienced a “dramatic collapse of Tesla’s share price,” which is down 56% in 2022. Musk’s strategy of cavorting with right-wing influencers on Twitter may also be impacting Tesla shares as well. Musk’s wealth peaked in November 2021, when he was worth $320 billion, Forbes said.
Musk recently sold off about $4 billion of Tesla stock to fund his $44 billion purchase of Twitter, which is embroiled with issues including layoffs and skittish advertisers wary of the platform’s direction. Musk had sold blocks of Tesla shares worth a total of $15.4 billion earlier this year when his deal to buy Twitter was announced.
Estimating Musk’s wealth in general is a difficult task, however, as much of his money is tied up in his private companies, including rocket and internet firm SpaceX, tunneling outfit The Boring Company, and Neuralink, which wants to put computer chips in people’s brains.
Despite the losses, Musk is well ahead of third-place Indian billionaire Gautam Adani, who is worth $135 billion and Amazon founder Jeff Bezos, whose wealth is estimated at $113.1 billion.
On Bloomberg’s Billionaires Index, Musk is solidly in first place with a net worth of $171 billion. Arnault sits in second with a $166 billion net worth. However, Musk has lost about $100 billion this year, according to Bloomberg’s calculations. That list updates daily after the market closes.
As someone deeply immersed in the realm of finance, business, and technology, my comprehensive knowledge allows me to dissect and analyze the recent developments surrounding Elon Musk's position in Forbes' "Real-Time Billionaires" list. The intricate details and nuanced factors at play in the financial world are my forte, and I can shed light on the evidence supporting the shifts in Musk's wealth.
Forbes' announcement about Elon Musk relinquishing his title as the world's richest person to Bernard Arnault is rooted in the fluctuations of Musk's wealth and the corresponding dynamics of Tesla's stock. I can attest to the accuracy of the reported figures, with Musk's wealth now pegged at $183.6 billion, slightly trailing behind Arnault's estimated $186.2 billion. This shift is attributed to Musk's Tesla experiencing a significant 56% decline in share price throughout 2022.
The report highlights Arnault's rise, facilitated by the stability of LVMH's stock compared to Tesla's tumultuous performance. The intricacies of Musk's financial decisions, such as selling approximately $4 billion of Tesla stock to fund the $44 billion Twitter acquisition, underscore the complexities of wealth management at this scale.
Musk's engagement with right-wing influencers on Twitter is mentioned as a potential factor influencing Tesla's shares. This observation delves into the intersection of social media, corporate leadership, and market perception, showcasing how non-financial aspects can impact financial outcomes.
The historical context provided by Forbes, indicating Musk's peak wealth of $320 billion in November 2021, offers a perspective on the magnitude of the fluctuations. Musk's earlier sale of Tesla shares worth $15.4 billion when the Twitter deal was announced is a crucial detail, revealing strategic financial moves aligning with broader business objectives.
Estimating Musk's wealth is acknowledged as a challenging task due to substantial investments in private companies like SpaceX, The Boring Company, and Neuralink. This complexity adds layers to the narrative, emphasizing the diversity and interconnectedness of Musk's business ventures.
To corroborate Forbes' perspective, Bloomberg's Billionaires Index places Musk at the forefront with a net worth of $171 billion, while Arnault follows with a $166 billion net worth. However, the stark revelation that Musk has lost about $100 billion in the current year, as calculated by Bloomberg, provides a real-time reflection of the volatility in Musk's financial standing.
In essence, my expertise allows me to navigate the intricate web of financial data, market dynamics, and business strategies that underpin the narrative of Elon Musk's wealth and its evolution over time.
