Elon Musk briefly lost his position as the world’s richest person to French billionaire Bernard Arnault in December 2022 as falling Tesla shares continued to weigh heavily on Musk’s fortune.
The shift happened amid a turbulent period for Musk, who had recently completed his $44 billion acquisition of Twitter while also facing a sharp decline in Tesla‘s stock price.
Elon Musk Loses the Top Spot — Briefly
On December 7, 2022, Bernard Arnault, chairman and CEO of luxury-goods giant LVMH, briefly overtook Musk on Forbes’ real-time ranking of the world’s wealthiest people.
According to Forbes, Arnault’s fortune reached an estimated $185.4 billion at one point that morning, while Musk’s was estimated at about $185.3 billion. The two fortunes were extremely close, meaning even relatively small movements in Tesla or LVMH shares could change the ranking. [oai_citation:1‡Forbes](https://www.forbes.com/sites/mattdurot/2022/12/07/elon-musk-was-overtaken-as-richest-person-in-the-worldbriefly/?utm_source=chatgpt.com)
Musk later regained the number-one position before the U.S. market closed, highlighting just how closely the two billionaires were competing for the top spot. Forbes reported that Musk ended December 7 with an estimated $185.4 billion, about $700 million ahead of Arnault. [oai_citation:2‡Forbes](https://www.forbes.com/sites/mattdurot/2022/12/07/elon-musk-was-overtaken-as-richest-person-in-the-worldbriefly/?utm_source=chatgpt.com)
Why Did Elon Musk’s Fortune Fall?
A major factor behind Musk’s declining fortune was the performance of Tesla’s shares.
Musk’s wealth was heavily connected to his stake in Tesla, meaning a significant decline in the company’s share price could quickly reduce his estimated net worth.
By December 2022, Tesla’s stock had suffered a dramatic decline compared with its record levels from the previous year. Forbes reported that Tesla shares were down nearly 50% for the year at the time and that Musk’s fortune had fallen substantially from its November 2021 peak. [oai_citation:3‡Forbes](https://www.forbes.com/sites/mattdurot/2022/12/07/elon-musk-was-overtaken-as-richest-person-in-the-worldbriefly/?utm_source=chatgpt.com)
The Impact of Musk’s $44 Billion Twitter Deal
Musk’s acquisition of Twitter was another major factor investors were watching closely.
Musk agreed to purchase Twitter for approximately $44 billion in April 2022 after a prolonged takeover process. The deal eventually closed in October 2022, with Musk becoming the company’s owner and CEO.
During the months surrounding the acquisition, Musk sold billions of dollars worth of Tesla shares. Forbes reported that Musk sold approximately $19.3 billion worth of Tesla stock between mid-April and early November 2022, before taxes, with the sales widely viewed in the context of financing the Twitter acquisition. [oai_citation:4‡Forbes](https://www.forbes.com/sites/mattdurot/2022/12/07/elon-musk-was-overtaken-as-richest-person-in-the-worldbriefly/?utm_source=chatgpt.com)
The situation created concern among some Tesla investors, who worried that Musk’s involvement with Twitter could distract him from running the electric-vehicle company.
Who Is Bernard Arnault?
Bernard Arnault is the chairman and CEO of LVMH, the French luxury-goods group behind numerous major fashion, beauty, jewellery and lifestyle brands.
LVMH’s portfolio includes globally recognised names such as Louis Vuitton, Christian Dior, Bulgari and Tiffany & Co.
Arnault’s fortune is closely linked to his family’s ownership and control of LVMH, making the company’s share price an important factor in his position on billionaire wealth rankings.
Musk and Arnault Kept Swapping Places
The December 2022 event was not a simple permanent change at the top of the billionaire rankings.
On December 7, Arnault overtook Musk more than once before Musk regained the lead. The following day, Arnault again finished ahead of Musk. Forbes reported on December 8 that Musk ended the day as the world’s second-richest person, with an estimated fortune of $185 billion compared with Arnault’s $186.2 billion. [oai_citation:5‡Forbes](https://www.forbes.com/sites/mattdurot/2022/12/08/elon-musk-no-longer-worlds-richest-again-as-stock-hit-by-report-of-personal-margin-loan/?utm_source=chatgpt.com)
By December 9, however, Musk had regained the number-one position after Tesla shares rallied. Forbes estimated Musk’s fortune at about $190 billion, around $3 billion more than Arnault at the time. [oai_citation:6‡Forbes](https://www.forbes.com/sites/mattdurot/2022/12/09/elon-musk-is-the-richest-person-in-the-world-again/?utm_source=chatgpt.com)
How Musk Became the World’s Richest Person in the First Place
Musk first overtook Amazon founder Jeff Bezos as the world’s richest person in September 2021, according to Forbes.
At the time, the surge in Tesla’s market value had dramatically increased Musk’s estimated fortune. Forbes reported that Musk had overtaken Bezos on September 27, 2021, after previously spending years behind the Amazon founder on billionaire rankings. [oai_citation:7‡Forbes](https://www.forbes.com/sites/mattdurot/2022/12/07/elon-musk-was-overtaken-as-richest-person-in-the-worldbriefly/?utm_source=chatgpt.com)
His position at the top was later challenged as Tesla’s share price declined and other billionaires, particularly Arnault, saw their fortunes hold up better.
Why Billionaire Rankings Can Change So Quickly
It is important to understand that billionaire rankings are estimates rather than fixed amounts of cash sitting in a bank account.
A large portion of the wealth of billionaires such as Musk and Arnault is tied to ownership stakes in publicly traded companies. When those companies’ share prices rise or fall, the estimated value of their fortunes can change by billions of dollars within a short period.
That is why Musk and Arnault were able to repeatedly exchange the world’s richest-person title during this period.
What Happened After December 7?
The competition between Musk and Arnault continued for several days.
Forbes reported that Arnault finished ahead of Musk on December 8, before Musk returned to the top on December 9 following a rise in Tesla shares. [oai_citation:8‡Forbes](https://www.forbes.com/sites/mattdurot/2022/12/09/elon-musk-is-the-richest-person-in-the-world-again/?utm_source=chatgpt.com)
The episode demonstrated how quickly the world’s wealth rankings can change when the fortunes involved are heavily tied to publicly traded companies.
Final Thoughts
Elon Musk’s brief loss of the world’s richest-person title to Bernard Arnault in December 2022 was closely connected to the sharp decline in Tesla’s share price and the financial and investor concerns surrounding Musk’s acquisition of Twitter.
However, the change was far from permanent. Musk and Arnault exchanged the top position several times over the following days, with Musk ultimately regaining the lead on December 9. [oai_citation:9‡Forbes](https://www.forbes.com/sites/mattdurot/2022/12/07/elon-musk-was-overtaken-as-richest-person-in-the-worldbriefly/?utm_source=chatgpt.com)
The episode is also a useful reminder that billionaire wealth rankings can move rapidly because much of these fortunes is tied to the changing market value of publicly traded companies.
What Do You Think?
Do you think Elon Musk’s involvement with Twitter contributed significantly to the decline in Tesla’s value during this period? Share your thoughts in the comments.
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