In a significant shift of fortunes, Elon Musk, the chief executive officer of Tesla Inc., has overtaken luxury magnate Bernard Arnault in the global wealth rankings. This development came on Wednesday as shares of Arnault’s LVMH dipped 2.6% during trading in Paris.
Musk and the 74-year-old Frenchman had been in a tight race for the top spot throughout this year, as indicated by the Bloomberg Billionaires Index, a prestigious list featuring the world’s 500 wealthiest individuals.
Arnault initially surpassed Musk in December, benefiting from the resilience of the luxury sector in the face of inflation while the tech industry experienced challenges. LVMH, the conglomerate founded by Arnault, boasts ownership of renowned brands like Louis Vuitton, Fendi, and Hennessy.
However, the once unwavering faith in the buoyancy of the luxury sector is starting to wane, primarily due to mounting signs of economic slowdown, particularly in the critical Chinese market. Since April, LVMH shares have plummeted by approximately 10%, causing Arnault’s net worth to suffer a staggering $11 billion loss in a single day.
On the other hand, Musk has witnessed a remarkable surge in his wealth this year, accumulating over $55.3 billion in gains, largely attributed to Tesla. The automaker, headquartered in Austin, has experienced a remarkable rally of 66% year-to-date, contributing to a significant portion, 71%, of Musk’s overall fortune. As per the latest index, Musk’s fortune is now estimated at around $192.3 billion, surpassing Arnault’s $186.6 billion valuation.
automotive industry Bernard Arnault Bloomberg Billionaires Index China market economic growth Elon Musk Luxury sector LVMH Tesla Inc. Wealth rankings
Last modified: June 5, 2023
