Elon Musk has regained his place as the richest person in the world, surpassing Bernard Arnault, the CEO of French luxury empire, LVMH (LVMUY).
Key Points to Remember
- Elon Musk has taken over the title of the richest person in the world, supplanting luxury scion Bernard Arnault.
- Shares of Tesla are up 64% year-to-date, while LVMH is up 18%.
- China, a major luxury goods market, has stumbled since pandemic restrictions were lifted in January.
The Tesla (TSLA) CEO's total wealth is now $192 billion, according to Bloomberg, while Arnault saw his fall to $187 billion after his company's shares fell 2.6% on Wednesday .
Musk first won the title in September 2021 when Tesla's stock surge pushed his net worth above $200 billion, overtaking Amazon (AMZN) CEO Jeff. Bezos. He was overtaken by Arnault last December after Tesla shares fell more than 50% in the space of a few months. He briefly reclaimed the title in March until a rally in Tesla shares stalled in April. Tesla regained its upward momentum in May, sending the stock up around 64% year-to-date. LVMH is up around 18% since the start of the year.
Brand actions European luxury goods have faltered as China's economy slumps from Covid-19 restrictions. A surge in demand in January immediately after China reopened began to subside. Manufacturing and services activity slowed in April, and retail sales figures for that month are lower than economists. forecasts.
Musk's wealth is closely related to his stake in Tesla, of which he owns around 13%. This has led to a $55 billion increase in his wealth this year alone. Musk's investment in Tesla is faring better than his acquisition of Twitter, which Fidelity says is now worth just 33% of its original $44 billion takeover price.