Tesla CEO Becomes World’s Richest Man Again.
The humiliation only lasted a little over two months.
Elon Musk has recovered his title of richest man in the world that he had taken away in mid-December by the French businessman Bernard Arnault.
Arnault, 73, is chief executive of the French luxury-goods giant LVMH (LVMUY) , owner of prestigious brands like Christian Dior, Louis Vuitton, Tiffany, and Veuve Clicquot Champagne.
The French tycoon took first place from Musk on Dec. 13. That day his net wealth was estimated at $171 billion, compared with $164 billion for Elon Musk, 51, according to Bloomberg Billionaires Index.
The fortunes of the two men are based on their stakes in their respective companies. Arnault owns 48% of fashion and luxury giant LVMH. Musk currently owns 14.11% of Tesla’s shares outstanding, according to FactSet. The tech billionaire also has a more than 40% stake in SpaceX.
The changes among the elite of the wealthy stemmed mainly from Tesla having a bad year on the stock market.
Musk’s Net Worth Is Estimated at $187 Billion
Last year, the maker of the Model S luxury electric sedan saw its stock fall nearly two-thirds (65%). In the other direction LVMH share prices benefited from the reopening of economies around the world after two years of covid lockdown.
But since the start of the year, Tesla shares have rebounded strongly on the stock market. Arnault hasn’t slowed down, but Musk’s comeback is supersonic. Over the first two months of the year, Tesla stock is up 68.6%, which translates to $267 billion more market capitalization.
This revival in turn reflects the sparkling fourth-quarter results the Austin EV producer reported. In addition, Tesla’s horizon seems clear: Demand for the group’s cars is at record highs, Musk told analysts on Jan. 25. The automaker also plans to produce up to 2 million vehicles this year after 1.37 million in 2022.
In a few months, Tesla will also start production of the highly anticipated Cybertruck, its first pickup/truck. This vehicle, whose order book is full, to the point where Tesla no longer takes orders in many parts of the world, is seen as the firm’s new cash cow.
Tesla is holding an Investor Day on March 1 and the markets are expecting Musk to make some dramatic announcements. The billionaire could unveil a $25,000 vehicle, which would allow Tesla to reach a large audience.
All this news has therefore benefited Tesla but also Musk. His personal fortune is now estimated at $187 billion as of Feb. 27, according to the Bloomberg Billionaires Index. It is up $50.1 billion this year. The tech mogul now finds himself ahead of Arnault, whose net worth is estimated at $185 billion, up by $23.2 billion this year.
Musk is once again the king of the world.
A Top 10 Dominated by the Tech Bros
At the beginning of the year the rankings of the biggest fortunes had been shaken by the tumble of the Indian tycoon Gautam Adani, whose net wealth has decreased by $82.8 billion. He is currently worth $37.7 billion.
Adani was hit with charges of fraud, money laundering and stock price manipulation issued by the New York short-seller Hindenburg Research. These allegations have caused sharp selling of the shares of the entities making up the Adani Group conglomerate. Adani, who started the year as the fourth richest person, is 21st now.
Mark Zuckerberg, CEO of social-media giant Meta Platforms (META) – Get Free Report, is in the process of returning to the top of the rankings thanks to a stock market rally at his empire. His net wealth is up $17.4 billion this year, at $63billion. He is ranked 19th.
The top 10 include five other tech tycoons: Jeff Bezos, founder and executive chairman of Amazon (AMZN) – Get Free Report, with a net wealth of $117 billion, up $10.2 billion this year, and Bill Gates, co-founder of Microsoft (MSFT) – Get Free Report, is worth $114 billion, up by $4.62 billion. Larry Ellison, co-founder of Oracle (ORCL) – Get Free Report, has a fortune of $102 billion, up by $10.2 billion. He’s ranked sixth.
Steve Ballmer, former CEO of Microsoft, is seventh with a fortune of $89.4 billion, up by $8.55 billion. Larry Page, co-founder of Alphabet (GOOGL) – Get Free Report, is eighth with $84.7 billion, up by $1.77 billion.
The legendary investor Warren Buffett is the fifth richest person in the world. He is worth $106 billion, down by $1.25 billion.
The Mexican business magnate Carlos Slim is ninth. His fortune is estimated at $83.2 billion, up $8.84 billion this year. The Indian tycoon Mukesh Ambani is ranked 10th, with a net wealth of $81.1 billion, down by $6.02 billion this year.