For the first time in over nine months, Elon Musk has surrendered his title as the world’s wealthiest individual. According to the Bloomberg Billionaires Index, Musk’s net worth dropped to $197.7 billion after Tesla Inc. shares plummeted by 7.2% on Monday. This decline allowed Amazon founder Jeff Bezos to reclaim the top spot with a fortune totaling $200.3 billion.
Bezos, 60, last held the position of the richest person in the world in 2021. The wealth gap between Musk, 52, and Bezos, which had widened to $142 billion at its peak, has been narrowing as Amazon and Tesla shares move in opposite directions. While Amazon shares have surged by over 100% since late 2022, Tesla shares have declined by approximately 50% from their 2021 peak.
The dip in Tesla’s shares on Monday came after preliminary data revealed a slump in shipments from its Shanghai factory to the lowest level in over a year. In contrast, Amazon is experiencing robust online sales growth, contributing to Bezos’s regained position atop the wealth rankings.
Musk’s fortune may face further challenges following a Delaware judge’s decision to invalidate his $55 billion pay package at Tesla. This decision, in response to a challenge from an investor, affects options that constituted a significant portion of Musk’s wealth, alongside his stakes in Tesla and SpaceX.
Despite the setback, Bezos remains Amazon’s largest shareholder, holding a 9% stake in the company even after selling 50 million shares worth approximately $8.5 billion last month.
This fluctuation in wealth rankings is not unfamiliar territory for Bezos, who first surpassed Bill Gates as the world’s richest person in 2017. However, a surge in Tesla shares throughout much of 2021 led to a neck-and-neck competition between Bezos and Musk for the top spot, with Musk eventually taking the lead late last year.
Bernard Arnault, chairman of LVMH Moet Hennessy Louis Vuitton, also remains among the world’s wealthiest individuals, with a net worth of $197.5 billion.
Key Points of the News
- Elon Musk Ousted: Elon Musk has lost his position as the world’s richest person to Jeff Bezos after a 7.2% drop in Tesla Inc. shares on Monday, according to the Bloomberg Billionaires Index.
- Jeff Bezos Reclaims Top Spot: Bezos, the founder of Amazon.com Inc., now holds the title of the world’s richest person for the first time since 2021, with a net worth of $200.3 billion.
- Wealth Gap Narrows: The wealth gap between Musk and Bezos, which was once as wide as $142 billion, has been shrinking as Amazon and Tesla shares move in opposite directions.
- Reasons for Musk’s Decline: Tesla’s shares fell on Monday due to a slump in shipments from its Shanghai factory, while Amazon continues to experience strong online sales growth.
- Legal Challenges: Musk’s wealth may face further challenges following a Delaware judge’s decision to invalidate his $55 billion pay package at Tesla, affecting options that were a significant portion of his wealth.
- Bezos’s Shareholding: Despite recent share sales, Bezos remains Amazon’s largest shareholder with a 9% stake in the company.
- Fluctuating Rankings: This change in wealth rankings is not new for Bezos, who first became the world’s richest person in 2017, and it follows a period of competition with Musk for the top spot throughout much of 2021.
- Other Wealthy Individuals: Bernard Arnault, chairman of LVMH Moet Hennessy Louis Vuitton, also remains among the world’s wealthiest individuals, with a net worth of $197.5 billion.
