The falling price of Tesla shares forced the serial entrepreneur into second position, making Elon Musk the second richest person in the world. The French billionaire Bernard Arnault surpassed Tesla and Twitter CEO Elon Musk in terms of nett worth on Monday. Arnault is the chairman and CEO of the manufacturer of luxury goods LVMH and is worth $187.1 billion.
Musk lost $7.4 billion on Monday, or almost 4% of his entire nett worth. Tesla shares, which lost 6.3% of their value at Monday's close of business, are a major source of wealth for Musk. Forbes estimated Elon Musk's nett worth at $304.2 billion at the beginning of the year, which means that his wealth has decreased by more than that of Jeff Bezos, the Amazon founder who is listed fourth richest.
Tesla shares increased by more than 4,000% in value in the ten years following the company's initial public offering (IPO), and Musk's other businesses, such as SpaceX, also attracted attention and funding, propelling him to the top of Forbes' list of the world's wealthiest people. His nett worth was $2.7 billion in 2013. However, following Musk's $44 billion purchase of the social media company Twitter, investors have adopted a cautious stance towards Tesla, which has led to a tumultuous few months for the shares of the electric-car manufacturer.
Bernard Arnault: Lord of Luxury
The value of Tesla shares has decreased by 60% since the year's commencement. By Tuesday morning, Tesla was selling at its lowest-ever multiple of 30 times anticipated earnings, and according to analysts surveyed by Bloomberg, the price could fall considerably worse. Currently, Musk controls 14.11% of Tesla's outstanding shares, which have a $530 billion market value. According to a $125 billion private market estimate from June 2022, Musk also owns more than 40% of the shares of SpaceX, boosting his nett worth by millions of dollars on paper.
This year, Indian industrialist Gautam Adani surpassed Bezos and Berkshire Hathaway CEO Warren Buffett to claim the third-place spot on Forbes' list of the world's richest people. Musk continues to hold the top spot in Bloomberg's Billionaires Index, which tracks the wealth of the world's richest people using slightly different methodology. Arnault is very closely behind Musk. According to Bloomberg, the CEO of LVMH has a nett worth that is just $1 billion less than Musk's.
Since the beginning of the year, $103 billion of Musk's fortune has been lost. That is almost the net worth of Oracle founder Larry Ellison, who is now ranked as the seventh-richest person in the world by Forbes and has a nett worth of $103.9 billion.
Who is Bernard Arnault
The new guy in top spot has is worth $171B. His wife has a career as a professional concert pianist. And he can apparently play as well. Fun fact. The head of the world's largest manufacturer of luxury goods, LVMH Moet Hennessy Louis Vuitton, is the richest person in France. He owns nearly 50 percent of LVMH, which generated revenue of $64.2 billion in 2021. It offers items including TAG Heuer watches, Dom Perignon wine, and Louis Vuitton leather goods. Arnault is certainly the Lord of Luxury but he does not indulge in tweeting.
A 97.5% ownership position in the opulent fashion house of Christian Dior accounts for the majority of Arnault's wealth. The shares are held by him through organisations linked to Groupe Familial Arnault, as per Dior's 2021 annual report. As founder and patriarch, Bernard Arnault is given full ownership of the family holding company's interests in Dior as well as all of its other holdings. According to Christian Dior's 2021 annual report, he owns 41.2% of LVMH, the greatest manufacturer of luxury goods in the world.