March 15, 2024 12:03 AM | 2 min read
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Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk has fallen to the third spot on the list of the world’s richest people, just weeks after holding the number two position. This shift is largely due to a slump in Tesla’s stock price this year.
Electric Struggles: Tesla has been the worst-performing stock in the S&P 500 this year. Analysts cite concerns about eroding margins from aggressive price cuts and a slowdown in the EV market.
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This decline has impacted Musk’s net worth, closely tied to Tesla’s performance. According to Forbes, his net worth has decreased by $3.9 billion to $187.9 billion. This places him behind Amazon.com Inc (NASDAQ:AMZN) founder Jeff Bezos, whose net worth is estimated at $196.8 billion.
The gap between Musk and the world’s richest person, Bernard Arnault, has also widened. Arnault, the CEO of LVMH Moet Hennessy Louis Vuitton SE (OTC:LVMHF) (OTC:LVMUY), boasts a net worth of $239.9 billion.
Contrasting Fortunes: Bezos, whose wealth is primarily driven by his Amazon stock ownership, overtook Musk on the list in early March. He recently capitalized on the significant growth of Amazon by selling around 50 million shares, reportedly netting him $8.5 billion. This move coincided with his relocation to Miami, a strategic decision that reportedly saved him a substantial amount in taxes.
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See Also: Everything You Need to Know About Tesla Stock
LVMH’s stock, on the other hand, has been on a tear this year, gaining over 20% on the Euronext Paris exchange. Morgan Stanley this week reportedly upgraded its outlook for the company, significantly increasing its price target on strong performance, particularly in its Fashion & Leather Goods division.
Why It Matters: Tesla’s downturn follows a period of strong recovery last year when it managed to deliver a record number of vehicles and rake in $96 billion in revenue.
Despite Tesla’s recent setbacks, the company has received a vote of confidence from some analysts such as Wedbush and fund managers such as Cathie Wood.
Price Action: Tesla closed Thursday’s session down 4.12% at $162.50, marking its lowest closing price since May 4, 2023, while Amazon gained 1.27% to $178.79, according to data from Benzinga Pro.
Image made via photos on Shutterstock and Wikimedia Commons
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