Elon Musk has been surpassed as the world's wealthiest individual by Bernard Arnault, the French tycoon behind luxury goods giant LVMH, as reported by Fortune.
This shift in rankings follows a tumultuous January for Tesla resulting in a substantial drop in Elon Musk's personal net worth. I Photo: Jérémy Barande / Ecole polytechnique Université Paris-Saclay / CC BY-SA 2.0
This shift in rankings follows a tumultuous January for Tesla, during which the company experienced a significant decline in market value, resulting in a substantial drop in Musk's personal net worth.
Tesla's stock price plummeted by 26% in January, leading to a $200 billion reduction in the company's market capitalization.
Musk's net worth, estimated by Forbes at $205 billion, has seen a considerable decline from its peak of $320 billion in November 2021.
The setbacks faced by Tesla included losing its position as the leading EV manufacturer to China's BYD, concerns over vehicle reliability in cold climates, and allegations against Musk regarding substance abuse.
Furthermore, Tesla's board faced scrutiny following revelations in the Wall Street Journal about Musk's behavior. Musk's push for a significant increase in his stake in Tesla also added to the company's challenges.
The company's Q4 earnings announcement further contributed to the stock price decline, with Tesla providing vague guidance and warning of slower growth in vehicle sales compared to the previous year.