Elon Musk inched closer to becoming the world’s richest man again after his French rival Bernard Arnault’s fortune fell $11.2 billion in a single day on Tuesday amid a stock market slide for luxury goods companies, Business Insider reported and Bloomberg.
Arnault, the tycoon who runs luxury goods giant LVMH Moët Hennessy • Louis Vuitton SA, is now valued by Bloomberg at $192 billion, $12 billion more than that of Musk, the CEO of Tesla, SpaceX and Twitter. At the beginning of the week, Arno’s lead over the South African billionaire was $21 billion.
Arnaud’s net worth has been affected by turmoil in financial markets in the luxury sector amid concerns that economic uncertainty in the United States could lead to a reduction in American spending.
The situation sent LVMH shares down 5% to 834.2 euros, or $900, on Tuesday. Arnaud’s wealth comes from a 97.5% stake in luxury company Christian Dior, which controls 41.4% of LVMH.
Similarly, the vast majority of Musk’s fortune comes from his stake in Tesla, which he lost on becoming the world’s richest man after the company’s share price fell last year amid a general decline in the tech sector’s stock market following its explosive growth during COVID-19. pandemic.
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At the same time, the big luxury goods manufacturers recorded record revenues during the pandemic, but they have remained in the situation even after the lifting of the quarantine and the return to normal life, because they operate in a market where they can operate on price increases. without losing many customers.
Taking advantage of the situation, in April this year LVMH became the first European company whose value exceeds 500 billion dollars. Its impressive growth was also helped by increased sales in China and the appreciation of the euro against the dollar.
But Tesla’s share price has risen more than 50% since the start of this year amid a resurgence in the stock market of so-called “growth” companies based on steady growth.
Also, in early April, financials released by the Musk-led electric car maker showed Tesla had its best quarter in its history for shipments, totaling 422,000 units, up 36% from the first quarter since 2022.
Analysts estimate that if all goes well, Elon Musk’s company could end the year with 2 million vehicles produced.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.