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WorldElon Musk: Lost world's richest man status

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Elon Musk: Lost world’s richest man status

After a significant decline in the value of his shares in the electric vehicle manufacturer Tesla this year, Elon Musk is no longer the richest man in the world.

According to Forbes and Bloomberg, Bernard Arnault, the head of luxury goods company LVMH, has surpassed Elon Musk for the top spot. Mr. Musk previously held that position.

Mr. Musk is Tesla’s CEO and the company’s largest shareholder, with a reported 14% stake.

In October, he finished a $44 billion takeover of the social media site Twitter.

Forbes estimates that Mr. Musk is now worth about $178 billion (£152 billion).

In contrast, Bernard Arnault is worth $188 billion.

Mr Musk’s Twitter deal was only completed after months of legal wrangling, and some have cited the distraction of the takeover as one of the factors behind Tesla’s share price fall.

After building a stake in Twitter at the start of the year, Mr Musk made his $44bn offer in April, although many considered this offer to be too high.

In July, he pulled out of the deal, citing concerns over the number of fake accounts on the platform.

Eventually Twitter executives took legal action to hold Mr Musk to his offer.

Dan Ives from investment firm Wedbush Securities said the “circus” surrounding the Twitter deal has weighed on Tesla’s share price.

“Musk has gone from a superhero to Tesla’s stock, to a villain in the eyes of the Street, as the overhang grows with each tweet,” he told the BBC.

“The Twitter circus show has hurt the Musk brand and it’s a major overhang on Tesla’s stock. Musk is Tesla and Tesla is Musk.”

Mr Musk sold billions of dollars worth of Tesla shares to help fund his purchase, which helped to push the shares down.

Investors have also been concerned that demand for the company’s electric cars may slow, as the economy weakens, higher borrowing costs discourage buyers and other companies boost their electric vehicle offerings.

Tesla has also been hit by recalls, as well as government probes of crashes and its autopilot feature.

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