Tesla shares are up 74% this year while Elon Musk's fall from his seat as the world's richest person by net worth was due to the sharp drop in Tesla stock, shares of the electric car maker are also why the CEO is now poised to reclaim the title.
Tesla shares are up 74% this year, especially after the company cut prices for its entire electric vehicle lineup.
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| Elon Musk |
Tesla shares ended Wednesday's trading up 2.38%, pushing the company's market capitalization to $677.87 billion.
With that, Elon Musk's net worth has reached $191 billion, less than $1 billion of Bernard Arnault's $192 billion net worth.
As of 8 February, 2023 Elon Musk's net worth is $191.4 billion. That's 0.9 per cent of U.S. GDP. He's compounded his wealth at an annual rate of 46.2 per cent since 1999. #ElonMusk pic.twitter.com/EQDyOUHXym
— Elon's Net Worth Daily (@elonsnetworth) February 8, 2023
Arnault is the CEO of LVMH Moet Hennessy Louis Vuitton, one of the world's largest producers of luxury products.
Arnault overtook Musk in December amid a slump in Tesla stock.
The losses in Musk's net worth in 2022 were so notable that Guinness World Records called him the person with the largest loss of wealth in history.
However, since Tesla's stock rebounded this year, Musk has made steady gains and is now within walking distance of the luxury goods executive.
However, it's worth noting that even though Musk's net worth has increased by $54.2 billion this year, it's still well below its all-time highs.
In his richest net worth in late 2021, Musk's net worth is listed as over $300 billion.
For Musk and Tesla, the previous year has been exceptionally difficult.
Aside from the headwinds in China that saw the closure of Gigafactory Shanghai — the company's largest factory by production — amid Covid-related lockdowns, Tesla shares have also been hit by Musk's acquisition of social media platform Twitter.
As Musk sold off a number of his shares to fund his Twitter purchases, shares of the electric car maker have seen a significant drop in value.