Elon Musk Is No Longer the World’s Richest Person, Falls Behind Bernard Arnault
Tesla CEO trails the European mogul on the wealth rankings amid a slump in the car maker’s shares
Tesla CEO trails the European mogul on the wealth rankings amid a slump in the car maker’s shares
Elon Musk is no longer the world’s richest person.
Mr. Musk, the Tesla Inc. chief executive and new owner of Twitter Inc., gave up the unofficial title Tuesday to European mogul Bernard Arnault for Earth’s wealthiest individual, according to Bloomberg, which publishes a ranking of the richest people in the world. A prolonged slump in Tesla’s stock has wiped out more than $100 billion of Mr. Musk’s net worth this year.
The net worth of Mr. Musk, who claimed bragging rights as the wealthiest person in January 2021, is valued at $163.1 billion as of Tuesday morning, according to Bloomberg. He now trails Mr. Arnault, the chairman and chief executive of luxury conglomerate LVMH Moët Hennessy Louis Vuitton, whose personal wealth is estimated at $170.6 billion.
Tesla didn’t respond to a request for comment. An LVMH spokesman declined to comment.
When Mr. Musk first reached the pinnacle of the Bloomberg Billionaires Index almost two years ago, he overtook Amazon.com Inc. founder Jeff Bezos, driven by a meteoric rise in the value of Tesla. The car maker’s shares have fallen sharply this year, though, amid concerns about demand. Mr. Bezos has also fallen in the wealth ranks and is now the fifth-richest person, largely reflecting a drop in Amazon’s stock amid recession fears. Mr. Bezos has said he plans to give away most of his fortune to charity.
For many executives and founders, their net worth is at least partially tied up in shares of their businesses. That means volatility in stocks and other holdings can sway their measures of wealth. Establishing their exact net worth can also be tricky, in part because many of their holdings are private.
Mr. Musk is compensated in stock awards as Tesla’s CEO and doesn’t accept a cash salary from the electric-car company. He has accumulated most of his wealth in recent years as Tesla has turned profitable.
In January 2020, Mr. Musk’s net worth was valued at about $28 billion, according to Bloomberg. As Tesla’s stock soared, so did Mr. Musk’s wealth, which peaked at $336 billion in November 2021. He has lost more on paper this year than any other billionaire, according to Bloomberg.
Mr. Musk, a serial entrepreneur, runs rocket company SpaceX, formally known as Space Exploration Technologies Corp. He also founded Boring Co., an underground tunnel business, and neuroscience startup Neuralink Corp. In October, Mr. Musk acquired Twitter for $44 billion. He has sold some Tesla stock this year at least in part to fund the Twitter deal, including selling $4 billion worth of shares last month.
It has been a rocky period for Twitter since Mr. Musk took ownership. He fired about half the staff, and the social-media company has seen waves of people leaving. It suffered “a massive drop in revenue” and was losing $4 million a day, he said soon after buying the business. Mr. Musk has said he aimed to make Twitter less dependent on advertising revenue that accounted for about 90% of sales, though efforts to introduce a paid subscription service have suffered repeated delays. He later said bankruptcy is a possibility for Twitter.
Mr. Arnault’s wealth, meanwhile, is largely tied up in the luxury empire LVMH.
A businessman from Northern France, Mr. Arnault bought the storied French fashion house Dior out of bankruptcy in the 1980s and then used it to amass a stake in LVMH. This shareholding structure remains in place today: the Arnaults own more than 97% of Dior, which in turn owns 41% of LVMH. The family also owns close to 7% of LVMH directly, with total voting rights of well above 50%.
Like some of his peers, Mr. Arnault went on a spending spree over the past three decades, allowing him to build economies of scale in advertising, shop leases and department-store space between his dozens of brands.
Ultimately, Mr. Arnault came out on top in a bruising race to become the biggest in the industry, earning the nickname “the wolf in cashmere” for the way he pursued acquisitions. LVMH’s wines-and-spirits division houses Dom Pérignon champagne and Hennessy cognac. Its fashion and leather goods unit includes brands like Loewe, Celine and Fendi, while the conglomerate also owns American jeweller Tiffany & Co. and watchmaker TAG Heuer.
Having gone on a tear since 2015, the luxury industry also has held up better than most this year. LVMH reported strong revenue in the most recent quarter as wealthy consumers continued to spend freely on luxury goods despite the uncertain economic backdrop.
Indian industrialist Gautam Adani is currently the third-richest person in the world, according to Bloomberg. Mr. Adani is the chairman of his namesake Adani Group, an India-based conglomerate involved in initiatives including green energy, power and gas distribution. His push into green energy comes as Indian Prime Minister Narendra Modi has stressed development for infrastructure and renewable energy. Shares of Mr. Adani’s publicly traded businesses have risen this year.
Mr. Adani is the first person from Asia who has ranked this high on Bloomberg’s wealth index, long dominated by U.S. tech entrepreneurs. Earlier this year he became a centibillionaire, with his net worth exceeding that of Warren Buffett.
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For self-employed Australians, navigating the mortgage market can be complex—especially when income documentation doesn’t fit the standard mould. In this guide, Stephen Andrianakos, Director of Red Door Financial Group, outlines eight flexible loan structures designed to support business owners, freelancers, and entrepreneurs.
1. Full-Doc Loan
A full-doc loan is the most straightforward and competitive option for self-employed borrowers with up-to-date tax returns and financials. Lenders assess two years of tax returns, assessment notices, and business financials. This type of loan offers high borrowing capacity, access to features like offset accounts and redraw facilities, and fixed and variable rate choices.
2. Low-Doc Loan
Low-doc loans are designed for borrowers who can’t provide the usual financial documentation, such as those in start-up mode or recently expanded businesses. Instead of full tax returns, lenders accept alternatives like profit and loss statements or accountant’s declarations. While rates may be slightly higher, these loans make finance accessible where banks might otherwise decline.
3. Standard Variable Rate Loan
A standard variable loan moves with the market and offers flexibility in repayments, extra contributions, and redraw options. It’s ideal for borrowers who want to manage repayments actively or pay off their loans faster when income permits. With access to over 40 lenders, brokers can help match borrowers with a variable product suited to their financial strategy.
4. Fixed Rate Loan
A fixed-rate loan offers repayment certainty over a set term—typically one to five years. It’s popular with borrowers seeking predictability, especially in volatile rate environments. While fixed loans offer fewer flexible features, their stability can be valuable for budgeting and cash flow planning.
5. Split Loan
A split loan combines fixed and variable portions, giving borrowers the security of a fixed rate on part of the loan and the flexibility of a variable rate on the other. This structure benefits self-employed clients with irregular income, allowing them to lock in part of their repayment while keeping some funds accessible.
6. Construction Loan
Construction loans release funds in stages aligned with the building process, from the initial slab to completion. These loans suit clients building a new home or undertaking major renovations. Most lenders offer interest-only repayments during construction, switching to principal-and-interest after the build. Managing timelines and approvals is key to a smooth experience.
7. Interest-Only Loan
Interest-only loans allow borrowers to pay just the interest portion of the loan for a set period, preserving cash flow. This structure is often used during growth phases in business or for investment purposes. After the interest-only period, the loan typically converts to principal-and-interest repayments.
8. Offset Home Loan
An offset home loan links your savings account to your mortgage, reducing the interest charged on the loan. For self-employed borrowers with fluctuating income, it’s a valuable tool for managing cash flow while still reducing interest and accelerating loan repayment. The funds remain accessible, offering both flexibility and efficiency.
Red Door Financial Group is a Melbourne-based brokerage firm that offers personalised financial solutions for residential, commercial, and business lending.
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