Home World Elon Musk Loses Top Spot as World’s Richest Person to Jeff Bezos

Elon Musk Loses Top Spot as World’s Richest Person to Jeff Bezos

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Elon Musk Loses Top Spot as World’s Richest Person to Jeff Bezos
Image Source: NBC News

In a dramatic shift in the world of billionaires, Elon Musk has been dethroned from his position as the wealthiest person on the planet by Amazon’s Jeff Bezos, according to the Bloomberg Billionaires Index. This marks the first time in over nine months that Musk hasn’t held the coveted title, as Tesla Inc. shares experienced a significant dip, plummeting 7.2% on Monday. With this decline, Musk’s net worth has fallen to $197.7 billion, while Bezos’ fortune soared to $200.3 billion.

The 60-year-old Bezos, renowned as the founder of Amazon.com Inc., has reclaimed the top spot on Bloomberg’s ranking of the richest individuals for the first time since 2021. This reversal of fortunes underscores the dynamic nature of wealth accumulation, particularly in the volatile world of stock markets and corporate dynamics.

The wealth gap between Musk, aged 52, and Bezos, which had once reached a staggering $142 billion, has been gradually diminishing as the trajectories of Amazon and Tesla diverge. While both companies are part of the esteemed “Magnificent Seven” stocks propelling US equity markets, Amazon shares have surged, more than doubling since late 2022 and approaching record highs. In contrast, Tesla has experienced a stark decline, down approximately 50% from its peak in 2021.

Monday’s decline in Tesla shares was exacerbated by preliminary data indicating a slump in shipments from its Shanghai factory, marking the lowest figures in over a year. Meanwhile, Amazon continues to showcase robust growth, boasting its best online sales performance since the onset of the pandemic.

Adding to Musk’s financial woes is a recent setback in Delaware, where a judge invalidated his $55 billion pay package at Tesla, where he serves as CEO. The ruling favored an investor who contested Musk’s compensation plan, which had previously held the title of the largest in history. Notably, options included in the annulled plan represent a significant portion of Musk’s assets, alongside his stakes in Tesla and SpaceX. Despite this legal blow, the Bloomberg Billionaires Index continues to factor them into its calculations of Musk’s wealth.

Bezos, on the other hand, derives the majority of his fortune from his 9% stake in Amazon, making him the online retailer’s largest shareholder. Even after divesting 50 million shares valued at approximately $8.5 billion last month, Bezos retains a formidable position in the company he founded.

For Bezos, reclaiming the top spot in the wealth rankings is a familiar achievement. He initially surpassed Microsoft Inc. co-founder Bill Gates as the world’s richest person in 2017. However, the intense competition with Musk for the top position characterized much of 2021, with Bezos falling behind late in the year before resuming his position at the helm of the billionaire hierarchy.

In addition to Musk and Bezos, Bernard Arnault, 74, chairman of LVMH Moet Hennessy Louis Vuitton, the world’s largest luxury-goods maker, also commands considerable wealth, with a net worth of $197.5 billion. As the landscape of billionaire fortunes continues to evolve, the latest reshuffling at the top serves as a reminder of the ever-changing dynamics of wealth accumulation and corporate leadership in the global arena.

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