Elon Musk is no longer the second richest person in the world
Elon Musk lost his place as the second richest person in the world on Monday, after Tesla shares fell another 2.2%, according to the Bloomberg Billionaire Index. He was dethroned by the luxury magnate, Bernard Arnault, president of LVMH. The two billionaires are currently separated by a few million on the list of the richest people in the world.
Bernard Arnault amassed a fortune of 161.2 billion dollars (131.9 billion euros approximately), while that of Elon Musk fell to 160.6 billion dollars (131.4 billion euros approximately) , according to Bloomberg. The decline in the fortune of the boss of Tesla and SpaceX is a direct result of the 24% drop in Tesla's stock from its January high. The electric vehicle maker stock hit an intraday high of $ 900 in late January, but has since fallen by more than a third to around $ 580 per share.
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The company's market capitalization has fallen to less than $ 560 billion, after peaking at nearly $ 870 billion. She faced PR issues in China, which hurt her monthly sales, according to Wedbush.
Eventful week for Elon Musk
Elon Musk grabbed the top spot on the list in January, after Tesla stock skyrocketed amid a boom in tech stocks.
The Tesla boss has had a hectic week in the markets after his bitcoin flip-flop caused an estimated $ 500 billion (around € 409 billion) loss in the cryptocurrency market. Bitcoin stabilized after the boss clarified that Tesla had not sold any of its cryptocurrency positions. His suggestions on how to improve the technical efficiency of dogecoin spurred small increases in the price of meme-inspired cryptocurrency.
“Tesla is the child star of the low-profit or no-profit equity movement that has worked incredibly well as markets saw ever-increasing central bank liquidity through 2020,” said Chris Weston, head of research at the broker Pepperstone.
"Those days are over, at least for now it seems, and in a world where market participants are debating the timing around a cut to the Federal Reserve's bond buying program, and where other central banks are already cutting theirs, the market has shifted from high growth stocks to value. "
Tesla shares closed at $ 576.83 on Monday, but were trading up 0.2% in Tuesday's pre-market, at $ 578.29 per share.
