Only 48 hours after winning the title of the richest man in the world, Elon Musk has lost his position once more.
Although his net worth decreased by nearly $2 billion to $184 billion on Thursday, according to the Bloomberg Billionaires Index, Musk is now ranked second.
Bernard Arnault Becomes Richest Person on the Planet
With a net worth of $186 billion, Bernard Arnault, CEO of LVMH, has surpassed Elon Musk, CEO of Tesla, to claim the title of the richest person in the world.
Two days after Elon fired Arnault to take the top seat, this change in authority took place. As the price of Tesla’s investment dropped by 65% in December 2022, Arnault previously ousted Musk.
Several factors contributed to this, including a deteriorating economy, declining Chinese demand, Musk’s concentration on Twitter’s management, which caused Tesla shares to be sold, and the firing of several staff.
After Musk lost his position as CEO, Tesla shares fell by over 1.4% on Wednesday, to $202.77. Following Tesla’s Investor Day on Wednesday in Austin, Texas, the stock continued to decline in after-hours activity, finishing 5.7% lower.
According to Bloomberg, Musk’s wealth would be negatively impacted by any decline in Tesla stock prices because his 13% investment in the company accounts for a significant portion of his net worth.
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Several investors were disappointed on Wednesday when Tesla did not show any affordable electric vehicles despite market rumours that Elon Musk would reveal the vehicle before the event.
According to Greg Bassuk, CEO of asset management company AXS Investments, “It’s no surprise that Tesla stock fell over 5% in the hours following Tesla’s Investor Day, as it fell short for investors regarding details on any new Tesla products or services.” This was stated in a note on Wednesday that was made public by Insider.
Bassuk continued by saying that investors were also disappointed because no specifics were offered while they awaited Tesla’s strategy for remaining competitive in the crowded and price-sensitive electric vehicle (EV) industry.
Nonetheless, despite Wednesday’s loss, Tesla stock is still up 65%. This development is positive so far since the demand for electric vehicles is increasing as a result of significant price reductions and flexible tax credit adjustments in the US.
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