Elon Musk, founder of Tesla and chief executive officer of Twitter, has been dethroned as the richest man on the planet by the French entrepreneur Benard Arnault, who is the owner of the fashion conglomerate LVMH.
This came after a decline of fifty percent in the value of Tesla’s shares. Elon Musk’s fortune, which is mostly related to Tesla stock, was spurred by a stratospheric spike in the electric carmaker’s share price, which surged more than 1,000% in only two years. Elon Musk’s wealth is largely tied to Tesla shares.
Because of his recent acquisition of the microblogging website Twitter, the fortune of the CEO of Tesla has decreased by almost one-half since its all-time high of $340 billion.
Elon Musk held the title of the world’s richest man since September 2021, when he overcame Jeff Bezos, the founder of Amazon. However, Musk is no longer the richest man in the world.
Elon Musk’s wealth has decreased by almost $70 billion since April, when he made a bid to acquire Twitter. This has caused Musk to lose his position as the richest person in the world, as over half of Tesla’s market value has been wiped off.
On April 13, the day before Twitter reported in a regulatory filing that the billionaire had launched a hostile bid to purchase the social media business for $44 billion, the shares of the electric vehicle producer traded at $340.79.
The influence of the Twitter contract: Musk spent months attempting to get out of the Twitter arrangement, but he was unsuccessful. After that, he sold more than $15 billion worth of Tesla shares, first for around $8.5 billion in April and then for an additional $6.9 billion in August, in order to generate enough cash to pay for the acquisition.
The Bloomberg wealth index reduced his worth by $10 billion after the completion of the Twitter acquisition in October. This is a reflection of the fact that shares of comparable companies have decreased in value since he made his offer to acquire them.
According to the documents made with the SEC, Arnault holds a little more than 60 percent of the voting share class in LVMH through various holding entities and family trusts. Arnault’s Wealth According to the Bloomberg Billionaire Index, Arnault has a net worth of around $167 billion.