How Elon Musk reclaimed title of world’s richest person
Tesla and SpaceX CEO Elon Musk became the world's richest person again on Wednesday after staying on the second spot for months. Here's how he reclaimed the top spot.
In Short
- Elon Musk regains title of world's richest person as LVMH chief Bernard Arnault slips
- Tesla stock surge boosts Musk's net worth to $192 billion
- Potential challenges lie ahead for Musk as Twitter acquisition and Tesla's driver assistance technology face scrutiny
By India Today Business Desk: Billionaire Elon Musk on Wednesday became the world’s richest person again, just a few months after he lost the position to luxury goods tycoon Bernard Arnault.
The 51-year-old Tesla and SpaceX CEO’s wealth stood at $192 billion on the Bloomberg Billionaires Index, $5 billion more than LVMH chief Arnault’s net worth.
Musk came back on top of the billionaires' list after LVMH shares fell sharply on Wednesday, reported Bloomberg.
While Arnault’s net worth has seen a sharp rise over the past few months, shares of his luxury brand company have been on a downward slide since the past month, losing over 6.75 per cent of their value.
Turnaround in fortunes
On the other hand, Elon Musk has seen a turnaround in his fortunes, with shares of Tesla rebounding 26 per cent in a month. It may be noted that Tesla’s value is the primary driver of Musk’s personal wealth.
The sharp rebound in Tesla stock has propelled his net worth closer to $200 billion, a level last seen in October 2022.
Musk’s net worth had plunged to $157 billion in April, following the sharp fall in technology stocks in the US amid the banking turmoil. But improvement in the key economic data and a resurgence of tech stocks, including Musk’s flagship firm Tesla.
Even as he reclaimed his position as the world’s richest man, Musk’s wealth took a massive battering after he decided to buy Twitter for $44 billion. The social media company is only worth a third of what Musk had paid for it, according to a report by Fidelity.
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Soon after Musk bought Twitter, his net worth plummeted as Tesla stock took a massive hit. His net worth at one point in 2021 reached around $340 billion but dropped below $200 billion last year as investors dumped Tesla’s shares amid apprehensions of the Twitter acquisition.
However, this year has been good for Musk as his net worth increased by $55 billion due to an 88 per cent surge in Tesla’s share value since January 2023.
Challenges ahead for Elon Musk
While Musk’s net worth has grown significantly this year, there are several challenges that could disrupt his run as the world’s richest man.
The biggest challenge Musk faces is the ongoing troubles at his newest acquisition, Twitter, which had been struggling financially even before the takeover.
Also Read | Elon Musk has lost Rs 2,500 crore daily this year as he fights to gain total control of Twitter
Tesla, too, has been facing its own set of challenges with questions raised over its driver assistance technology. It may be noted that Tesla recalled over 3.6 lakh vehicles in February after regulators flagged concerns regarding its Full Self-Driving Beta software.
Musk's net worth could also suffer due to the ongoing global slowdown and the banking turmoil in the US, which has done significant damage to the world's most powerful economy.
Will Musk succeed in holding on to his position despite the challenges? Only time will tell.
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