The recent decline in Tesla’s stock has had significant consequences for its shareholders, most notably Elon Musk. As a result of the fall, Musk appears to have lost his position as the world’s richest man.
Musk’s net worth took a hit of over $18 billion as Tesla shares experienced a 12% drop last Thursday following disappointing earnings. According to Forbes, this puts his personal fortune at $204.5 billion. On the Forbes list of billionaires, Musk has now been surpassed by Bernard Arnault, who is estimated to be worth $207.8 billion.
Arnault, the founder, chair, and CEO of LVMH Moët Hennessy-Louis Vuitton, holds the top spot with a diverse portfolio that includes fashion, jewelry, cosmetics, wines, and spirits. LVMH’s renowned brands such as Louis Vuitton, Christian Dior, Bulgari, and Sephora have contributed to its dominance in the luxury-goods industry globally. Arnault, aged 74, has strategically built the company through a series of acquisitions.
While Tesla’s disappointing earnings have played a significant role in the stock slump and subsequent wealth loss for Musk, it is not the sole reason for the change. LVMH shares saw a 13% increase following the company’s fourth-quarter report, reflecting strong sales performance. In the fourth quarter alone, LVMH achieved sales of €23.9 billion ($26 billion), ultimately reaching an all-time high of €86.2 billion in full-year revenue.
Measuring personal wealth precisely is challenging due to the ownership of privately held assets, including Musk’s stakes in SpaceX and the social-media platform X (formerly Twitter). According to the Bloomberg Billionaires Index, Musk still maintains his top position with $199 billion. He is followed by Jeff Bezos, the founder of Amazon.com, with a fortune of $184 billion. The Bloomberg Index places Bernard Arnault’s wealth at $183 billion.
It is important to note that personal wealth calculations can vary due to the nature of privately held assets. However, the recent stock slump in Tesla has undoubtedly impacted Elon Musk’s ranking as the world’s richest man.
