Elon Musk, the once world’s richest man, has fallen from his place again just after 48 hours of achieving his crown.
Musk is now at No. 2 after his net worth dropped by about $2 billion to $184 billion on Thursday, as the Bloomberg Billionaires Index reported.
Bernard Arnault, the CEO of LVMH, has succeeded Musk, the CEO of Tesla, to become the world’s richest man with a net worth of $186 billion.
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This shift in role happened two days after Elon kicked off Arnault to reach the top spot. Arnault had earlier unseated Musk in December 2022 when Tesla’s stake price fell by 65%.
This happened for various reasons, including a worsening economy, decreasing demand in China, Musk’s focus on Twitter’s administration which led to selling Tesla shares, and the termination of several employees.
Tesla stock witnessed a drop of close to 1.4% downward to $202.77 on Wednesday after Musk lost his top spot. After Tesla’s Investor Day in Austin, Texas, on Wednesday, they extended the drop in after-hours trade to end 5.7% lower.
According to Bloomberg, Musk’s fortune would be hit if there is any fall in the share prices of Tesla as he derives much of his net worth from his 13% stake in the company.
In a Wednesday event, many investors were discontent when Tesla did not reveal any budget-friendly electric vehicle when there were rumours around the market of the announcement of the car before the event by Elon Musk.
“It’s no surprise that Tesla stock fell over 5% in the hours following Tesla’s Investor Day, as it fell short for investors regarding details on any new Tesla products or services,” Greg Bassuk, the CEO of asset management firm AXS Investments, wrote in a Wednesday note seen by Insider.
Bassuk added that investors were also hurt over the fact that no concrete details were provided as they were waiting to hear Tesla’s plan of how they would stay competitive in this packed and price-sensitive Electric Vehicles (EV) market.
However, despite Wednesday’s setback, Tesla stock is still up by 65%. This is good growth as demand is improving after massive price cuts and flexible tax credit changes in the United States for electric vehicles.