Elon Musk could reclaim his position as the richest person in the world as a result of the recent rise in Tesla stock prices and declines in Tesla shares. After a brutal 2022 in which the shares of Tesla lost 65%, the stock has been on a tear this year, rising 68% so far in 2023. The declines that occurred in the previous year pushed down the value of CEO Elon Musk’s personal wealth, much of which is invested in Tesla stock.
This year, Elon Musk’s net worth increased to $45 billion. This is primarily due to the fact that TSLA shares, which rose for the eighth day in a row on Thursday, are heavily correlated with Musk’s wealth. Elon Musk’s net worth also decreased as a result of the steep 65 percent decline in Tesla stock last year.
Elon Musk, who was listed as the world’s wealthiest person by net worth at the time, was overtaken by Arnault as Tesla shares fell in 2022. This took place in December, when demand concerns were exacerbated by Gigafactory Shanghai shutdowns and Tesla investors criticizing Musk’s actions on Twitter.
After experiencing a drop of 65 percent in 2022, Tesla’s stock appreciated significantly after the company reduced the prices of its best-selling vehicles, such as the Model 3 sedan and the Model Y crossover.
Elon Musk and other executives of the electric vehicle manufacturer highlighted the extremely healthy demand for the company’s products during the Q4 and FY 2022 earnings call. Additionally, Tesla reported quarterly results that were better than anticipated last month.
With Investor Day on March 1, Tesla may soon experience additional advantages. On Twitter, CEO Elon Musk stated that Investor Day would include discussions on Part 3 of the Master Plan, which focuses on Tesla’s extreme growth. Additionally, sections of the third Master Plan will be devoted to Elon Musk’s other businesses, such as SpaceX and The Boring Company.
According to the Bloomberg Billionaires Index, Musk’s net worth has increased from almost $50 billion in 2023 to $186 billion, putting him back within striking distance of the title of world’s richest person. Musk is now only $3 billion short of CEO Bernard Arnault’s $189 billion net worth at LVMH Mot Hennessy Louis Vuitton (MC.France). The CEOs of LVMH and Tesla have a significant financial stake in their respective companies’ stock.
Both men’s fortunes depend on the stock prices of the businesses they run. Arnault, the 73-year-old French tycoon who owns Dior, TAG Heuer, and Tiffany brands, hasn’t fared so badly for himself: his wealth has increased by $27 billion this year, and LVMH stock has increased by 17% over the same time period.
Musk has primarily been chasing Arnault higher in the game of billionaire riches despite a larger rally in the stock market to begin the year. However, a recent divergence in LVMH and Tesla’s performance could help conclude the deal and restore Musk’s dominance.
Even though Tesla’s stock was down 4.9% on Friday, it has increased by more than 9% in the past five days. In contrast, LVMH’s gains appear to have waned, as the company’s shares fell 3% during the same time period.
Musk will once again be the richest person in the world if that momentum continues and the Tesla stock continues to outperform LVMH. at the very least until the market’s winds return.