Bernard Arnault, the CEO of LVMH, has claimed the title of the world’s wealthiest individual, surpassing Elon Musk, the CEO of Tesla, in a stunning turn of events.
According to Forbes’ real-time billionaires list, Arnault and his family’s net worth has soared to an impressive $207.8 billion. This surge, totalling $23.6 billion, has propelled Arnault ahead of Musk’s $204.5 billion fortune.
The shift in rankings comes on the heels of Tesla’s turbulent ride in the stock market. The electric car company experienced a significant setback on Thursday, with its shares plunging by 13 per cent. This downturn led to Musk shedding over $18 billion from his net worth, according to Forbes.
Meanwhile, LVMH saw a notable uptick in its stock value, with shares climbing by more than 13 percent following reports of robust sales. The luxury goods conglomerate’s market capitalization reached $388.8 billion, although it still trails behind Tesla’s $586.14 billion valuation, according to Forbes’ data.
Tesla’s stock woes were exacerbated by Musk’s cautionary statements about future sales growth. Musk acknowledged that despite slashing prices, which had already impacted profit margins, the company anticipated declining sales growth.
He outlined Tesla’s shift towards producing more affordable next-generation electric vehicles at its Texas factory by the latter half of 2025, albeit acknowledging the challenges associated with ramping production and integrating cutting-edge technologies.
Analysts at TD Cowen expressed concerns over Tesla’s trajectory, highlighting disappointing fourth-quarter revenue and profit figures. Michael Hewson, chief market analyst at CMC, echoed these sentiments, emphasizing the competitive landscape Tesla faces, particularly in China with companies like BYD, and the potential impact on operating margins.
In summary, Bernard Arnault’s ascension to the top of the wealth rankings marks a significant milestone, underscoring the dynamic nature of the global economy and the fortunes of its key players.
