Elon Musk, the CEO of Tesla (TSLA), has further solidified his position as the world’s wealthiest individual. While he has experienced a slight decline in wealth in recent days, his fortunes have been buoyed by the surge in Tesla’s stock throughout the year.
As of the end of Thursday, Musk’s net worth stood at $237 billion, a decrease of $3 billion from before. However, this dip has been overshadowed by the remarkable success of Tesla’s stock, which has surged by 110% this year. Consequently, Musk’s wealth has skyrocketed by an astounding $100 billion so far in 2023.
On the other hand, billionaire Bernard Arnault, a rival contender for the title of the world’s richest person, has encountered a decline in his financial standing. Arnault owns a significant stake in luxury conglomerate LVMH (MC.France), renowned for brands such as Louis Vuitton, Tiffany, and Möet Champagne. LVMH’s stock has suffered a 3% setback this year, with a staggering 8% drop in just the past five days. Consequently, Arnault finds himself trailing behind in terms of wealth.
Arnault’s estimated net worth plunged by over $5 billion due to the decline in LVMH stock on Wednesday. His total wealth now amounts to $157 billion, according to the Bloomberg index. This puts Jeff Bezos, the founder and executive chairman of Amazon (AMZN), within striking distance of Arnault, as his estimated net worth currently stands at $156 billion.
Why has Arnault experienced such a significant decline in wealth?
LVMH is highly susceptible to consumer trends, and the current global economic backdrop has cast a shadow over its success. The stock has faced pressure throughout the year, primarily due to indications of a slowdown in China, where affluent shoppers play a pivotal role in supporting luxury brands. Moreover, LVMH recently reported lackluster sales, with the company’s chief financial officer highlighting weakness in Europe and disappointing growth in the United States.
In conclusion, Elon Musk’s remarkable rise in wealth, fueled by Tesla’s stock surge, has enabled him to widen the gap between himself and his closest competitor, Bernard Arnault. The changing dynamics in the luxury industry and the global economic headwinds have undoubtedly played a role in Arnault’s recent decline in wealth. As both individuals continue to navigate the fluctuating market conditions, their positions on the list of the world’s wealthiest people may continue to shift.