NEW YORK, USA – According to the latest Forbes billionaire index data, Elon Musk, the 52-year-old maverick CEO of Tesla, has been ousted from his throne as the world’s wealthiest person, supplanted by long-term competitor Bernard Arnault.
Arnault, head of luxury goods conglomerate LVMH, now sits atop the index with an impressive net worth of $237.3 billion, edging out Musk by $1.6 billion.
This change in ranking arrives less than a month after Musk’s latest ascension to the zenith of global wealth. The primary cause: a dramatic downturn in Tesla’s stock value leading to a staggering loss of nearly $20 billion for Musk.
Tesla shares, which in June propelled Musk to the summit of the Forbes’ billionaire ranking, saw a decline of over 7% this week.
This market turbulence substantially reduced Musk’s wealth, amounting to approximately $21.2 billion, leaving him with a total net worth of $236.5 billion as of Sunday morning.
The stock’s downturn coincided with the release of Tesla’s second-quarter earnings report. Despite higher-than-expected earnings, Tesla was hit by investors’ concerns about potential overvaluation, considering its remarkable $818 billion market capitalization.
This led to a sharp 10% fall in shares on Thursday, July 20, 2023, and an additional 0.5% decline by noon on Friday, July 21, 2023.
Only days prior, Musk seemed to be on an upward trajectory, with Tesla shares hitting their peak in 2023 on Tuesday.
However, given Musk’s substantial 23% stake in Tesla through stock and options, the market downturn significantly impacted his net worth.
Meanwhile, Bernard Arnault had a comparatively quieter week.
The 74-year-old French billionaire, who owns high-profile brands such as Louis Vuitton, Christian Dior, and Tiffany, saw a modest 3% drop in shares over the week leading up to Friday.
This marks a victorious return for Arnault, who last held the top spot in late June, before being eclipsed by Musk amidst Tesla’s surging share prices.
The tides of billionaire fortunes are continually shifting, swayed by market dynamics, investor sentiment, and individual company performance.
As Musk prepares to rally and potentially reclaim his title, the financial world waits for the next chapter in this captivating billionaire saga.
A few days ago, Tesla’s future appeared bright, with stocks witnessing a five-day positive streak, hitting a share price of $290.38, marking a significant 21.74% increase.
This surge was spurred by the company’s announcement of a record number of deliveries in the second quarter, showcasing a 10% increase from the previous quarter and an astounding 83% surge compared to the same period last year.
