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Arnault overtakes Elon Musk as world’s richest man
In a stunning turn of events, Elon Musk, the 52-year-old CEO of Tesla, has been dethroned as the world’s richest man, according to Forbes billionaire index data.
His long-term competitor, Bernard Arnault, now claims the coveted top spot on the Forbes billionaire index, boasting a staggering net worth of $237.3 billion as of the latest report.
This unexpected shift in fortunes comes less than a month after Musk’s latest reign as the wealthiest person in the world, all thanks to a dramatic decline in Tesla’s stock value.
On Thursday, Musk suffered a whopping loss of nearly $20 billion due to a significant fall in investor confidence.
Tesla’s once-surging shares, which had propelled Musk to the summit of Forbes’ billionaire ranking in June, have plummeted by over 7% this week.
READ ALSO: It’s morally wrong to work from home — Elon Musk declares
In the wake of this market turbulence, Musk’s net worth has experienced a substantial decrease of approximately $21.2 billion, leaving him with a total net worth of $236.5 billion as of Sunday morning.
Remarkably, the new frontrunner, French luxury goods tycoon Bernard Arnault, surpasses Musk by a margin of $1.6 billion.
Merely days ago, Musk seemed to be on an upward trajectory, with Tesla shares hitting their peak in 2023 on Tuesday.
However, optimism quickly gave way to pessimism when the company released its second-quarter earnings report after Wednesday’s market close.
Despite reporting higher-than-expected earnings, Tesla faced a backlash from investors who raised concerns about the company’s possible overvaluation, given its staggering $818 billion market capitalization.
Consequently, shares took a sharp nosedive of nearly 10% on Thursday, with a further 0.5% decline by noon on Friday.
READ ALSO: It’s morally wrong to work from home — Elon Musk declares
Given Musk’s significant stake of about 23% in Tesla through stock and options, the market downturn makes a dent in his net worth.
In contrast, Arnault, the LVMH boss, had a relatively smoother week. The 74-year-old French billionaire, who owns iconic brands like Louis Vuitton, Christian Dior, and Tiffany, experienced a modest 3% drop in shares over the week leading up to Friday.
This marks a moment of triumph for Arnault, who reclaims the top position for the first time since late June when Musk surpassed him amidst Tesla’s soaring share prices.
The billionaire landscape is ever-changing, influenced by market dynamics, investor sentiment, and company performance.
As Musk regroups and strategizes to regain his standing, the financial world watches with bated breath to witness further developments in this gripping billionaire saga.
Tesla, an electric vehicle maker company saw its stocks embark on a five-day positive streak, reaching a share price of $290.38, a remarkable increase of 21.74% (8.09%).
Tesla’s shares soared on Monday morning following the company’s announcement of a record number of deliveries in the second quarter, validating Elon Musk’s strategy of stimulating demand through aggressive price discounts.
The company reported a remarkable delivery of 466,140 vehicles in the second quarter, indicating a 10% increase from the previous quarter and an astounding 83% surge compared to the same period last year. The deliveries comprised 446,915 Model 3/Y and 19,225 Model S/X.