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Elon is back on top of the world! Musk regains the title of richest man in the world from the head of LVMH, Bernard Arnault, when the fortune reaches 187,100 million dollars after a rebound of 100% in Tesla shares in a month
- Musk’s net worth has risen dramatically in 2023 thanks to Tesla’s rebound
- The electric car maker is currently valued at $207.63 per share, compared with $108.10 on January 2.
- Musk, who also owns Twitter, reclaims the top spot from Bernard Arnault, the French head of LVMH, the world’s largest luxury goods company.
Elon Musk has regained his position as the world’s richest man with a net worth of $187.1 billion thanks to Tesla’s stock price boom.
He regained the title from Bernard Arnault, head of luxury goods company LVMH, who is now the world’s second-richest with a net worth of $185.3 billion.
Musk’s wealth has risen as shares of Tesla, his electric car company, have nearly doubled since the start of 2023. The company was one of many tech stocks that suffered badly last year, but is currently trading at $207.63 per share, compared with $108.10 on January 2.
The 51-year-old’s place at the top of the Bloomberg Billionaires Index had previously been surpassed by Arnault on December 13.
Musk’s return to the number one spot was sealed on Monday when Tesla shares rose 5.5% for the day. It means Musk’s net worth as of Tuesday afternoon was around $50 billion more than it was at the start of the year.
Musk’s return to the number one spot was sealed on Monday when Tesla shares rose 5.5% for the day.
Musk has reclaimed his place as the world’s richest man thanks to Tesla’s share price nearly doubling since the beginning of this year.
Musk regains the position of richest man in the world from Bernard Arnault, head of the luxury goods company LVMH
Musk’s value in recent years has largely been attributed to the value of Tesla, which soared during the pandemic as the company turned profitable but suffered last year in part due to concerns about production.
His net worth peaked at around $336 billion in November 2021.
Last year, its finances were hit by the $44 billion acquisition of Twitter. To complete it, he was asked to sell $15 billion of his Tesla shares. The completion of the deal in October alone saw Bloomberg wipe $10 billion of its value.
The LVMH luxury goods business withstood last year’s market turmoil and outperformed the benchmark S&P 500 index.
LVMH businesses benefited as demand for luxury retail products increased once COVID-19 restrictions were lifted, allowing for increased shopping.
Arnault bought the French fashion house Dior out of bankruptcy in the 1980s and used that to gain a stake in LVMH.
That shareholding structure is maintained today. The Arnaults own more than 97 percent of Dior, which in turn owns 41 percent of LVMH.
The family also owns about 7 percent of LVMH directly, giving it total voting rights of well over 50 percent and control of the company.
Worth more than $1 trillion, Tesla lost nearly 65 percent of market value in a tumultuous 2022, wiping out more than $400 billion of the company’s market capitalization.
Tesla’s 2023 rally came after an initially poor start to the year. The shares plunged nearly 14 percent on the first day of trading this year, after the company missed fourth-quarter delivery estimates despite shipping a record number of vehicles.
LVMH shares, a major source of Barnard Arnault’s value, are currently trading at around $168.91.
Musk’s value in recent years has largely been attributed to the value of Tesla, which soared during the pandemic as the company turned profitable but suffered last year in part due to concerns about production.
Musk has dominated headlines in recent days for his role as the head of Twitter, which laid off 200 employees this weekend as part of its latest round of job cuts.
The social media company has cut more than half its staff since the Musk acquisition.
When details of the latest job cuts emerged on Sunday, Musk tweeted: “Hope you have a good Sunday.” First day of the rest of your life.
The layoff of much of the product team has led some to speculate that Musk is preparing to bring in entirely new teams.
The move comes despite Musk telling employees during a meeting in late November that no further plans for staff reductions were being made.
At the time, Musk defended the decision to lay off 3,700 people, saying, “There’s no other option when the company is losing more than $4 million a day.” He defended the decision saying that all those who were fired were offered three months’ severance, ‘50% more than the legally required’.