Lost American billionaire, Elon Musk, his title as the richest person in the worldAt its peak, his fortune was estimated at $340 billion.
The Frenchman, Bernard Arnault, became the owner of the title of the richest person in the world, which he was previously called more than once.
Musk’s wealth, 51, has fallen by more than $100 billion since January to $163.6 billion, according to the Bloomberg Billionaires Index.
That compares with the $170.8 billion net worth of Bernard Arnault, 73, whose fortune is largely derived from his 48% ownership of fashion giant LVMH.
Musk’s loss of his title comes for the first time since he gained the title in September 2021, the culmination of a turbulent year for the famous billionaire.
Musk shocked the world in April with his offer to acquire Twitter for $44 billion, but his agreement coincided with the Federal Reserve and other central banks embarking on their most aggressive rounds of monetary tightening, slashing the valuations of high-tech companies such as Tesla by more than 50%. This year.
Tesla fell 4.1% on Tuesday to $160.95, the lowest closing price since November 2020.
Musk tried for months to get out of the Twitter deal, but failed, and unloaded more than $15 billion in Tesla stock — about $8.5 billion in April, then another $6.9 billion in August — to raise enough money for the purchase.
Once the Twitter acquisition was completed in October, Bloomberg Wealth lost $10 billion of its fortune, reflecting the decline in comparable stocks since it made its bid.
And with Tesla’s share price dropping, Musk’s stake in Space Exploration Technologies Corp. has become an increasingly important part of his fortune.
SpaceX is valued at $47 billion, based on a June funding round that valued the private company at $125 billion.
Bloomberg News reported this week, citing people familiar with the matter, that SpaceX is offering to sell the insiders’ shares at a price that would raise the company’s valuation to about $140 billion.
This higher value could raise Musk’s net worth, but it has not yet been used by the Bloomberg Wealth Index because it is unclear whether any shares have been traded so far and the volume of transactions, according to what was seen by Al Arabiya.net.
Arnault has long been a mainstay near the top of the wealth rankings, but his wealth has never grown at an exponential pace as that of America’s tech billionaires.
Now his empire is holding on while Mark Zuckerberg, Jeff Bezos, Larry Page and Alphabet’s Sergey Brin see their fortunes dented by rising interest rates.
Arnault’s luxury brands benefited from pent-up demand unleashed as Covid-related shopping and travel restrictions were lifted in most countries.
Louis Vuitton’s brands cater to the wealthy – from Christian Dior and Fendi to jewelers Bulgari and Tiffany & Co, among others.