Due to a considerable decline in the value of his shares in the electric vehicle manufacturer Tesla this year, Elon Musk is no longer the richest person in the world.Elon Musk has been eclipsed by Bernard Arnault, CEO of luxury goods business LVMH, for the top spot.
The majority of Arnault’s wealth comes from his sizeable position in Christian Dior SE, the holding company that owns 41.2% of LVMH. He owns shares in Christian Dior SE and 6.2% of LVMH through Groupe Familial Arnault, the holding firm run by his family.
Musk, who owns a reported 14% of Tesla, serves as both its CEO and its largest stakeholder. In October, he successfully acquired Twitter for $44 billion, which allegedly caused Tesla board members to become concerned. Investors are reportedly much more alarmed by Musk’s hiring of Tesla engineers to work for Twitter.Musk’s current net worth is estimated by Forbes to be around $178 billion (£152 billion).
After months of legal wrangling, Musk’s acquisition of Twitter was finally completed. Some have attributed the decline in Tesla’s stock price on the platform’s distraction, microblogging.After making an investment in Twitter at the beginning of the year that many deemed to be too pricey, Musk made his $44 billion bid in April.
In July, he withdrew from the agreement due to concerns about the prevalence of phoney and automated accounts on the network. Representatives of Twitter eventually filed a lawsuit to enforce the billionaire’s offer.
Investor Dan Ives of Wedbush Securities asserts that the “circus” surrounding the Twitter acquisition has reduced the value of Tesla’s stock.