Tesla’s stock market instability and X disaster cost it dearly

Like the Guadiana, which comes and goes, Elon Musk has become the world’s richest man intermittently since 2022, where he seems to trade top spot with Frenchman Bernard Arnault every six months.

The French luxury tycoon heads the holding company LVMH, whose strength in the stock market has allowed him to overtake the Tesla CEO and now tops Forbes’ list as richest man in the world with a net worth of $208.1 billion, according to the Forbes Real-Time Millionaires List.

That said, the credit goes beyond LVMH’s strong performance on the stock market, which recorded a 12.8% rise in its shares last Friday, giving it an additional $23.6 billion, with which it displaced Elon Musk as the richest man. Human.

Wealths are closely linked to the prices of their companies

The LVMH group includes luxury fashion, jewelry, perfume, cosmetics and wine companies with names such as Louis Vuitton, Tiffany & Co, Christian Dior, Sephora, TAG Heuer, Hublot, Moët & Chandon and Dom Pérignon. After a slight decline after the summer, the luxury sector has regained its sales rhythm and with it the Arnault family’s fortunes.

Bernard Arnault’s luxury empire is currently marketed at $388.8 billion as of Friday, compared to Tesla’s $586.14 billion.

Elon Musk also had something to say on the matter, as Tesla’s quarterly results just a few days ago did not calm the mood of its investors. Since then, shares of the electric vehicle maker have continued to fall. leaving 8% of its cost in just five days, with estimated losses of approximately $18 billion.

Decline in private valuations of funds investing in

This rating is prepared taking into account all real estate, cash and real estate investments. The South African tycoon does not own any mansions or large properties in his own name, and his entire wealth is invested in his companies.

This leaves Elon Musk in the situation is very susceptible to stock market fluctuations, forcing the assessment of their fortunes to directly blame any crisis on the performance of their companies. Something for which he is in some cases directly responsible.

Given the personalism of Elon Musk’s leadership in his companies, his personal reputational “crises” directly affect the valuation of his companies, and when this happens, it causes a domino effect, causing them all to suffer to a greater or lesser extent. Which is not the case with the French luxury tycoon.

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Image | Flickr (Ministry of Communications), Jeremy Barand