Elon Musk Reclaims Crown as World's Richest Man

Elon Musk has reclaimed his position as the wealthiest individual globally, surpassing Bernard Arnault, the chief executive officer of LVMH (LVMUY), the French luxury goods empire.

Key TakeAway

• Elon Musk has recaptured the designation of the globe's wealthiest individual, displacing Bernard Arnault, the heir to the luxury goods empire.
• Tesla stocks have surged by 64% year-to-date, whereas LVMH has experienced an 18% increase.
• China, a prominent market for luxury goods, has encountered a stumbling start since easing pandemic restrictions in January.

The aggregate wealth of the CEO of Tesla (TSLA) now stands at $192 billion, as per Bloomberg, while Arnault witnessed a decline to $187 billion as his company's stock dipped 2.6% on Wednesday.

Musk initially attained the prestigious position in September 2021, when the remarkable surge in Tesla stock propelled his net worth beyond $200 billion, surpassing the then-CEO of Amazon (AMZN), Jeff Bezos. However, Arnault surpassed him in December after Tesla shares plummeted by over 50% within a few months. Musk briefly regained the title in March, only to see a pause in the rally of Tesla shares during April. Nonetheless, Tesla regained its upward momentum in May, driving the stock up by approximately 64% year-to-date. LVMH, on the other hand, has experienced an increase of around 18% throughout this year.

The performance of European luxury brand stocks has stumbled as the Chinese economy grapples with the aftermath of Covid-19 restrictions. The initial surge in demand observed in January, following China's reopening, has gradually subsided. Manufacturing and services activities witnessed a slowdown in April, while retail sales figures for the same month fell short of economists' predictions.

The accumulation of Musk's wealth is intricately tied to his ownership stake in Tesla, where he possesses approximately 13% of the company. This has resulted in a substantial $55 billion surge in his wealth solely within this year.

In contrast, Musk's investment in Twitter has not fared as well, with Fidelity estimating its current value to be merely 33% of the initial acquisition price of $44 billion.