Elon Musk No Longer World’s Richest Person

Elon Musk No Longer World’s Richest Person

We are talking about Elon Musk hitting number two in the world. What happened? Sure. So for the third or fourth time in the last week or so, actually. But, yeah, again today, he was overtaken by Bernardo No French luxury conglomerate. LVM H. So, yeah, they’ve kind of been swapping spots for the last few days, starting with last Wednesday when Arnold sort of passed them for the first time on a couple of occasions, and Musk was able to overtake them by the end of the day.

Arnold ended up holding the lead at the end of the day Thursday, and then going into the weekend, tesla rallied after a pretty rough week, and that was enough to help Elon Musk regain his spot at the top going into the weekend. So it’s been a lot of moving parts for the last several days, and I’m not sure we’ve seen the last of that. Well, this is mostly about Elon Musk versus Bernard Arnold of LVMH, right?

What specifically is the main issue that’s pulling down his net worth right now? For sure. Yeah. So for Arno, it’s been more of a matter of just holding his spot. While, you know, Elon musk, who had a very significant lead, over $100 billion at one point, has regressed back towards him.

And about a year ago, when Elon Musk became the richest person in the world for the first time, in September, he crossed the 200 billion dollar mark, becoming the third person ever to hit that mark behind Bezos as well as Arnold. And not long after that, tesla’s stock skyrocketed even further.

Elon Musk was the first person ever worth 300 billion. So now, as we sit here today, he’s back below 200 billion in the 180,000,000,000 range, as I said, trading spots that I know every day. It’s really been a matter of just a huge, you know, fall in wealth for Elon Musk, mostly driven by the devaluing of his Tesla shares, which make up most the big part of his net worth. They’re down nearly 50% year to date. Well, it begs the question of whether Tesla itself was overvalued last year. Sure, yeah. I think analysts are kind of split on that point.

I think there’s a group that will say exactly just that it’s the Elon Musk effect of people chasing a hot stock tied to a big name that may have led to it accumulating a valuation that was never realistic, to begin with. And then others maybe don’t hold that view but view this Twitter acquisition as having been a huge distraction, which has played a big role in wiping out nearly half the company’s valuation. And that’s on top of existing problems with supply chain issues that have really hampered the company’s results the last few quarters.

So, yeah, it’s not been a good year so far for Tesla, and you raise a good point, which is this precipitous decline in Elon Musk’s wealth was tied to when he took over Twitter. If he succeeds in turning around Twitter, would that have much of an impact on his wealth? Yeah, I think it would. In two parts, relative to his Tesla stake,

Twitter is still a relatively small piece of his fortune. But we estimate that the value of his Twitter stake is down nearly half from the $44 billion price that he agreed to pay in April before tech stocks crashed and he tried to walk away. So that certainly hasn’t helped. So he could see some recovery there. And then I think if you were to just write the ship at Twitter, maybe he could then afford to take a little less of a hands-on approach, which might go a long way to alleviating Tesla investor’s concerns.

But it’s just been a huge distraction for him, which has been one of the key things that are been weighing on Tesla’s stock price. So, Matt, you’re saying that the Twitter stake is currently worth about half. It’s roughly just north of 20 billion. Is what that stake is worth what is his total net worth today? Yeah, so he is, as we sit here, right above 180,000,000,000, trailing or not by 3 billion or so, down from like 320,000,000,000 at some point. Is half of his net worth still tied

up in Tesla, or has that diminished to less than half? Still a little bit more than half at this point, yeah. So how close is he to Arnold? I don’t know if we’ve seen this back and forth, but does this seem to be a downward trajectory at this point in terms of what we’ve seen in the last several weeks? For sure, yeah. As I said, Arnold LVMH is basically flat in the last year.

Arnold has kind of just held his spot in the rankings with his net worth fluctuating by a tiny amount and just kind of watching as Elon musk, who had led him by upwards of 100 billion at one point, has sunk back towards them. So one other question, which is, I know in the stock market, perception is reality oftentimes. Are you getting much of a sense in terms of the sentiment? And is the sentiment overall negative with regard to the impact that his current actions at Twitter are having on investors in Tesla or any of his other ventures? Yeah, I think so. I think speaking with analysts, the view seems to be pretty widely

accepted that the concerns that Tesla investors had that this was going to be a huge distraction for Musk have turned out to be correct. And I think it’d be hard to find anyone who would say that the Twitter acquisition has been good for Tesla.

Elon Musk

You May Also Like:

Leave a Reply

Your email address will not be published. Required fields are marked *