Elon Musk is No Longer the World’s 2nd-Richest Person After Tesla Shares Lost a Quarter in Value Since January
LVMH chairman Bernard Arnault, with a fortune of $161.2 billion, overtook the Tesla billionaire.
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Elon Musk lost his position as the world’s second-richest person on Monday after shares fell another 2.2%, according to the .
He has been unseated by luxury goods tycoon, chairman Bernard Arnault. Both billionaires are currently set apart by a few millions on the list of the world’s wealthiest people.
Arnault has amassed a fortune of $161.2 billion, while Musk’s has fallen to $160.6 billion, according to .
Musk’s drop in his wealth is a direct consequence of Tesla’s stock falling 24% from its January high. The EV-maker’s shares spiked to an intraday high of $900 in late January, but has since slumped by more than a third to around $580 per share.
The company’s market capitalization has dropped to below $560 billion from a peak of almost $870 billion. It has been facing PR issues in China that hurts its monthly sales, according to .
Related: Elon Musk Says Bitcoin Isn’t Decentralized as He Goes to War With Crypto Bulls
Musk had on the list in January after Tesla shares skyrocketed amid a boom in technology stocks.
The Tesla boss was already having an eventful week in markets after his of around $500 billion from the crypto market. stabilized after he clarified . His on how to improve the technical efficiency of spurred small increases in the price of the meme-inspired cryptocurrency.
“Tesla is the poster child of the low or no earnings equity movement that has worked incredibly well, as markets saw ever-increasing central bank liquidity through 2020,” said Chris Weston, head of research at brokerage Pepperstone, adding that when Tesla moves, it can become a momentum and trend juggernaut.
“That time is over, at least for now it seems, and in a world where market participants are debating the timing around a reduction in the Federal Reserve’s bond-buying program, and other central banks are already tapering theirs, the market has moved from high growth stocks to value.”
Tesla’s shares closed at $576.83 on Monday, but were last trading 0.2% higher in Tuesday’s pre-market at $578.29 per share.
Related: Elon Musk Says Tesla Will No Longer Accept Bitcoin Due to Environmental Concerns
Elon Musk lost his position as the world’s second-richest person on Monday after shares fell another 2.2%, according to the .
He has been unseated by luxury goods tycoon, chairman Bernard Arnault. Both billionaires are currently set apart by a few millions on the list of the world’s wealthiest people.
Arnault has amassed a fortune of $161.2 billion, while Musk’s has fallen to $160.6 billion, according to .
