Elon Musk is no longer the richest person in the world, according to the Bloomberg Billionaires Index. Musk slipped to the second spot, giving way to famous French billionaire and CEO of Louis Vuitton Bernard Arnault. Musk's decline can be attributed to a drop in Tesla's share price.
Tesla's drop in share price corresponded with a rise in LVMH stock price which brought Arnault to the lead. Arnault's net worth now hovers at $171 billion while Elon Musk is at $164 billion.
The SpaceX and Tesla CEO's wealth has dropped to $168.5 billion, with his $44 billion spend on purchasing Twitter taking a chunk out of his net worth. This is the first time this year he has dropped from the top spot since taking it in 2021.
Musk's relegation to the second spot is being linked to the drop in Tesla's shares on Tuesday. The EV maker's shares dropped by 6.5 per cent to $156.91 in New York, putting its market cap to below $500 billion, Bloomberg reported.
Musk has invested heavily in social media platform Twitter, for which he paid $44 billion. Under him, the microblogging giant has undergone a complete overhaul, introducing new features including a paid Twitter Blue subscription service.
According to FactSet data, Musk presently owns 14.11% of Tesla's outstanding shares, with a market value of $530 billion. Musk also owns more than 40% of SpaceX shares, adding billions on paper to his net worth, based on a $125 billion private market valuation from June 2022.
In a down year for stocks, LVMH shares have dropped just 1.5% in 2022. LVMH is based in Paris and is listed on Euronext Paris.
The Bloomberg Billionaires Index, which uses slightly different methodologies, was updated on Tuesday to also rank Musk's fortune behind Arnault.
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