Elon Musk’s net worth fell about $2 billion to $184 billion on Thursday, according to Bloomberg.
He is now the second richest person in the world after Bernard Arnault, CEO of LVMH.
Musk knocked Arnault off the top spot 48 hours ago, but he was hit by a drop in Tesla shares on Wednesday.
Just 48 hours after reclaiming his crown as the world’s richest person, Elon Musk has been dethroned again.
He was bumped to No. 2 after his net worth fell by about $2 billion to $184 billion on Thursday, according to the Bloomberg Billionaires Index. Musk – who is the CEO of Tesla – is now the second richest person in the world after Bernard Arnault, the CEO of LVMH, who has a fortune of $186 billion.
The role reversal occurred just two days after Musk knocked Arnault from first place. The Frenchman had dethroned Musk in December after Tesla’s share price plunged 65% in 2022 due to several factors including a lackluster economy, a slowdown in demand in China, Musk’s messy Twitter takeover dampening investor sentiment , and a broad tech sell-off.
Musk’s slip from the top spot follows a drop in Tesla stock — shares closed 1.4% lower at $202.77 on Wednesday. They extended the declines in after-hours trading to 5.7% lower following Tesla’s Investor Day in Austin, Texas on Wednesday. Since Bloomberg derives much of Musk’s net worth from his 13% stake in Tesla, a fall in stock prices would affect his fortunes.
Investor sentiment could have taken a hit as Tesla failed to unveil a budget-friendly electric car at Wednesday’s event. Prior to the event, there were market rumors that Musk could announce a $25,000 car.
“It’s no surprise that Tesla’s shares fell more than 5% in the hours following Tesla’s Investor Day, as it fell short of investors on details of new Tesla products or services,” wrote Greg Bassuk, CEO of Tesla. asset management firm AXS Investments, in a Wednesday note seen by Insider.
Bassuk added that investors were disappointed as they waited for concrete details of Tesla’s plans to remain competitive in an increasingly crowded and price-sensitive EV market – but it didn’t materialize.
Despite Wednesday’s setback, Tesla’s stock is still up 65% year-to-date as demand improves after aggressive price cuts and favorable changes in the US tax credit for electric vehicles.
Read the original article on Business Insider