Who overtook Elon Musk to become the world’s richest person?

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Bernard Arnault, head of LVMH (Louis Vuitton Moët Hennessy), has claimed the title of the world’s richest person, overtaking Tesla’s Elon Musk.

According to Forbes magazine’s latest Real-Time Rich List, Arnault’s net worth is now a staggering $207.6 billion (€191.5 billion), surpassing Musk’s $204.7 billion (€188.74 billion). There is.

Mr Arnault experienced an extraordinary increase in wealth last week, with his net worth increasing by $22.7 billion (€20.9 billion) in just one day on Friday, an increase of an astonishing 12.3%. In stark contrast, Elon Musk saw his fortune plummet by $18 billion (€16.6 billion) the previous day, with his net worth falling by 8.1%.

This reversal of fortunes became especially apparent after the release of their latest financial reports, highlighting a fork in the road in their business empire.

A record-breaking 2023 for LVMH

Arnault’s luxury goods giant LVMH has reported that 2023 will be a record year.

The conglomerate, which includes famous brands such as Louis Vuitton, Christian Dior, Fendi and Tiffany, recorded impressive revenue growth across its prestigious brand portfolio, reaching a staggering €86.2 billion for the full year. did.

This corresponds to a significant increase of 13% compared to the figure from 2022 and was significantly higher than the 85.74 billion euros expected by analysts.

Within the LVMH Group, the strongest revenue growth was seen in the Selected Retail division, which recorded a significant year-on-year increase of 25%.

The surge was driven by Sephora’s outstanding performance and DFS’ growth supported by a rebound in international travel.

LVMH’s gross profit increased by 9.4% to 59.28 billion euros, and net profit reached 15.2 billion euros, registering an 8% increase compared to 2022.

Bernard Arnault maintained a cautiously optimistic outlook, saying: “While we remain cautious in the current situation, we enter 2024 with confidence, supported by a highly desirable brand.”

The French billionaire also highlighted LVMH’s participation in the Paris 2024 Olympic and Paralympic Games and expressed his hope that 2024 will be an exciting and special year.

The positive sentiment surrounding LVMH was also reflected in its stock market performance, with the share price increasing by 12.81% to €773.10 following the announcement. The huge increase was the biggest single-day rise since October 2008 and propelled Arnault to the top of the world wealth rankings.

Tesla faces setback

On the other side of this wealth equation is Elon Musk’s Tesla. The electric vehicle giant expects sales to reach $25.2 billion (€23.2 billion) in the fourth quarter of 2023, an increase of just 3.5%, and annual sales to $96.8 billion (€89.3 billion), up 15% from 2022. ) was reported to have been reached.

However, Tesla’s gross profit fell significantly by 15.3% to $17.66 billion. Tesla’s net profit soared to $7.93 billion (7.3 billion euros), a significant increase of 115%, but this extraordinary performance was mainly due to his $5.75 billion temporary This is due to tax benefits.

Looking ahead, Tesla offered a cautious outlook for 2024, predicting a “challenging” year for the global auto industry and predicting a “significant” decline in its profit margins. This outlook led several Wall Street analysts to lower their expectations for Tesla, leading to a downgrade of the stock.

Tesla shares fell 12% after the results were released, contributing to Elon Musk’s loss as the world’s second-richest person.

The stark contrast between the financial fortunes of Bernard Arnault and Elon Musk highlights the volatile nature of wealth in the modern business environment, where rapid fluctuations in net worth can occur in hours depending on the market performance of their respective empires. It’s highlighted.