Elon Musk has reclaimed his position as the world’s richest person after a brief loss to France’s Bernard Arnault.
Musk’s fortune has grown thanks to a nearly 70% increase in Tesla Inc.’s stock price this year. It’s nearly 100% higher from its intraday low on January 6 as investors re-invest in riskier growth stocks amid signs of economic strength and a slower pace of Federal Reserve interest-rate hikes. After lowering prices on several models, the company has seen increased demand for its electric vehicles.
According to the Bloomberg Billionaires Index, Musk’s net worth increased to $187.1 billion as Tesla shares rose 5.5% to $207.63 at 4 p.m. in New York. That is more than Arnault’s fortune of $185.3 billion, the 73-year-old French tycoon behind luxury goods powerhouse LVMH.
Musk, 51, entered 2023 with a net worth of $137 billion, making him the first person in history to lose $200 billion from their fortune and raising the prospect that he may struggle to reclaim his title as the world’s richest person. He has knocked off the top of Bloomberg’s wealth index for more than two months due to a steep drop in Tesla, where he is CEO.
Musk’s net worth was unaffected by donations he made late last year. According to a February disclosure, he gave 11.6 million Tesla shares to unnamed charitable causes between August and December. Based on the closing prices on the days it was donated, the stock was worth approximately $1.9 billion.
Tesla investors were concerned that he was devoting too much of his attention to Twitter, which he acquired in October, while his electric carmaker faced increased competition across the industry. Musk stated in December that he intends to resign from his position on the social media platform once he finds someone “foolish” enough to accept the position.
He stated earlier this month that he may need until the end of the year to stabilize Twitter’s finances before handing over the reins to a new CEO.
In a February report, RBC Capital Markets analyst Tom Narayan stated that Tesla’s price cuts had increased vehicle demand and that the company is the “poster child” of electric vehicles.
“Even in the face of increased EV competition, we believe there is strong demand for Tesla products,” Narayan wrote.
On Wednesday, Tesla will host its 2023 investor day, during which the company’s leaders will discuss long-term expansion plans.
The Nasdaq 100 Index, which is heavily weighted toward technology, is up about 10% in 2023, but Tesla’s gains have far outpaced it. This year has seen sporadic bursts of speculative trading mania among retail traders, with Tesla being a favorite.
