Elon Musk loses world’s richest person title to Jeff Bezos

0
48
Elon Musk loses world’s richest person title to Jeff Bezos
Elon Musk loses world’s richest person title to Jeff Bezos

Elon Musk has relinquished his title as the world’s wealthiest individual after more than nine months. Following a 7.2% decline in Tesla Inc. shares on Monday, Musk’s net worth dropped to $197.7 billion. This change in fortune propelled Jeff Bezos back to the top of the Bloomberg Billionaires Index with a fortune totaling $200.3 billion.

Jeff Bezos, aged 60 and the founder of Amazon.com Inc., has reclaimed the top spot on Bloomberg’s list of the wealthiest individuals for the first time since 2021. The wealth disparity between Bezos, at 60, and Elon Musk, 52, had once peaked at $142 billion, but it has gradually narrowed as Amazon and Tesla shares have moved in opposite trajectories.

Both Amazon and Tesla are prominent constituents of the so-called Magnificent Seven stocks that have been pivotal in propelling the US equity markets. Amazon’s shares have surged, more than doubling since late 2022 and nearing a record high. In contrast, Tesla has experienced a significant decline, dropping about 50% from its peak in 2021.

The shift in fortunes for Musk and Bezos was underscored by recent market movements. Tesla shares plummeted on Monday following reports indicating a decline in shipments from its Shanghai factory to the lowest levels in over a year. Meanwhile, Amazon enjoyed a boost, recording its most robust online sales growth since the early stages of the pandemic.

The evolving dynamics between Tesla and Amazon stocks have played a crucial role in reshaping the rankings of the world’s wealthiest individuals. Despite the fluctuations, both companies remain influential forces in the global economy and continue to attract significant investor attention. As their fortunes ebb and flow, the rivalry between Musk and Bezos serves as a compelling narrative within the realm of business and finance.

Pay Packages 

Elon Musk’s wealth faces potential further decline following a Delaware judge’s decision to invalidate his $55 billion pay package at Tesla, where he serves as chief executive. The ruling favored an investor who contested Musk’s compensation plan, which had been hailed as the largest in history.

Among Musk’s significant assets were options included in the annulled plan, alongside his stakes in Tesla and SpaceX. Despite this setback, the Bloomberg index continues to factor them into its calculations of his net worth.

In contrast, the majority of Jeff Bezos’s fortune is derived from his 9% ownership stake in Amazon, where he remains the largest shareholder. Even after divesting 50 million shares valued at approximately $8.5 billion last month, Bezos’s wealth remains firmly anchored in the e-commerce giant.

For Bezos, claiming the title of the world’s wealthiest individual is a familiar position. He initially surpassed Bill Gates, co-founder of Microsoft Inc., in 2017.

However, the landscape shifted dramatically in 2021, with a significant surge in Tesla’s stock price causing Bezos to vie with Musk for the top spot. Towards the end of the year, Bezos slipped behind, only to reclaim the pinnacle of wealth supremacy recently.

Bernard Arnault, aged 74 and chairman of LVMH Moet Hennessy Louis Vuitton, the world’s leading luxury-goods conglomerate, also commands a position among the globe’s wealthiest individuals, boasting a net worth of $197.5 billion.

LEAVE A REPLY

Please enter your comment!
Please enter your name here