FINANCE
Elon Musk no longer world’s richest person
The fortune behind the man responsible for Tesla, Space-X and Neuralink, has now been surpassed at the top of the rich list.
The global financial landscape continues to evolve and headlines in recent years have surrounded the vast fortune of Elon Musk, giving him the title of World’s Richest Person. Well, no longer, it appears. The number one multi-billionaire is said to be Bernard Arnault, the eminent chairman and CEO of the globally renowned luxury goods conglomerate LVMH.
Who is Bernard Arnault, richest person in the world?
According to the latest data on the Forbes real-time billionaires list, Arnault and his family have witnessed a remarkable surge in their net worth, reaching an impressive $207.8 billion. This staggering increase of $23.6 billion on Friday has propelled Arnault ahead of Musk, whose net worth currently stands at $204.5 billion.
Behind the 200 billion club members comes Amazon’s Jeff Bezos with $186.6B, and then Oracle’s Larry Ellison with $142.4B. Then there is Mark Zuckerberg, Larry Page, Warren Buffett and Bill Gates, in that order.
The shifting tides in the fortunes of these billionaires coincide with a challenging day for Musk’s Tesla in the stock market. Tesla experienced a significant dip of 13%, leading to Musk’s net worth plummeting by more than $18 billion. Meanwhile, LVMH shares were on a remarkable ascent on Friday, enjoying a surge of over 13%, driven by encouraging news of robust sales. As of 11 a.m. on Friday, the market cap of LVMH soared to $388.8 billion, showcasing a stark contrast to Tesla’s market cap of $586.14 billion. This unexpected twist in the financial narrative underscores the dynamic nature of the business landscape. And clearly this can switch back very quickly.
Arnault, Tiffany’s and TikTok
One of the key milestones contributing to Arnault’s financial triumph was LVMH’s monumental acquisition of Tiffany & Co. in 2021, a deal valued at nearly $16 billion. This transaction is widely regarded as the most significant luxury brand acquisition in history. Arnault’s influence extends beyond LVMH, with his holding company Agache supporting the venture capital firm Aglaé Ventures. Notably, Forbes reports that Aglaé Ventures is actively involved in investments in enterprises such as Netflix and ByteDance - the parent company of the popular platform TikTok.
Arnault’s commitment to family legacy and control is evident in his recent strategic moves. In a bid to secure long-term family control, he appointed two of his sons to the LVMH board. This decision complements the existing presence of two other children on the board, solidifying the Arnault family’s influence over the luxury goods empire.
Musk not going anywhere
The ventures of South Africa-born Musk has seen him much more of a household name, with his acquisition of X, the social media platform formerly known as Twitter, and subsequent controversial decision about its strategy, getting tongues wagging. It cost around $44 billion, just under one-fifth of his total wealth, adding to his control in media and information companies.
Coming from the humble background of emerald mine owners, Musk made his early break in software companies such as Zip2 and Paypal, before taking the plunge into some huge business ventures.
Elon Musk and his business connections
Tesla
Tesla is perhaps Musk’s most well known business. Though no longer the company head, now CEO, Musk has had enormous say in how the company is run since 2008. The car company manufactures electric vehicles on a large scaling, earning him praise in an era where the world needs to cut down on emissions.
It is the world’s most valuable automotive companies and has a market value of over $1 trillion. Despite the positives, the company has been hit with allegations of unsafe worker conditions, as well as the self-driving mode having the potential to be faulty.
Tesla also has a subsidiary company which specialises in the production of long-lasting batteries, called Tesla Energy.
SpaceX
Founded by Musk in 2002, SpaceX is an aerospace manufacturer. With NASA taking a backseat in space exploration since the 1980s, SpaceX and its competitors hope to be the companies that can take humanity further into the stars. For Musk, his aim is to make it commercially viable for humans to explore space and colonise the planet Mars.
SpaceX has completed a number of firsts for a private company, such as the first reuse and reflight of a crewed space capsule, and the first private company to send humans into orbit.
Neuralink
Musk co-founded the neurological research company in 2016. Its aim is to treat serious brain disease, as well as attempt to link artificial intelligence with the human mind. Clinical trials are expected to begin soon. He has promised that the technology “will enable someone with paralysis to use a smartphone with their mind faster than someone using thumbs.”
The Boring Company
Founded in 2016, the company is for Musk’s infrastructure planning. In the past, he has discussed his plans for a ‘Hyperloop’ transport system, basically underground tunnels for cars. The plans have been criticised for being more expensive and less practical compared public transportation methods, such as trains.
Twitter, now X
Musk’s latest purchase is social media site Twitter. Many users have complained about the algorithm and different aspects of X, but, although many people have left the site, the social media platform continues to be one of the most used sites on the internet. “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” Elon Musk said in a statement.
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