Elon Musk has lost his title as the world’s richest person for the first time in over nine months. Jeff Bezos has now taken the top spot on the Bloomberg Billionaires Index after Tesla Inc shares dropped by 7.2% on March 4. Musk’s net worth has fallen to US$197.7 billion, while Bezos’ fortune stands at US$200.3 billion.
This marks the first time since 2021 that Bezos, the 60-year-old founder of Amazon.com Inc, has secured the number one ranking in Bloomberg’s list of the richest individuals. The wealth gap between Musk, 52, and Bezos has been narrowing as shares of Amazon and Tesla have moved in opposite directions. While both companies are part of the Magnificent Seven stocks driving US equity markets, Amazon’s shares have more than doubled since late 2022, nearing a record high, while Tesla’s shares have declined by approximately 50% from their peak in 2021.
Tesla’s stock prices fell after data showed a decline in shipments from its Shanghai factory to a level not seen in over a year. In contrast, Amazon experienced its highest online sales growth since the beginning of the pandemic.
Pay package
Musk’s wealth may continue to decrease following a Delaware judge’s ruling against his US$55 billion pay package at Tesla, where he serves as the CEO. This judicial decision sided with an investor who had raised concerns about Musk’s compensation plan, previously the largest in history.
The options included in the invalidated plan are among Musk’s significant assets, in addition to his ownership in Tesla and SpaceX. Despite the voided pay package, the Bloomberg index still factors them into calculations of Musk’s wealth.
Bezos derives the vast majority of his fortune from his 9% stake in Amazon, making him the company’s largest shareholder, even after selling 50 million shares valued at about US$8.5 billion last month. This position at the top of the wealth rankings is not unfamiliar to Bezos, as he first surpassed Bill Gates as the world’s wealthiest individual in 2017.
Although Bezos had to compete with Musk for the title of richest person throughout much of 2021 due to a significant surge in Tesla shares, he fell behind towards the end of the year and has now reclaimed the top spot. Bernard Arnault, the 74-year-old chairman of LVMH Moet Hennessy Louis Vuitton, the world’s largest luxury goods maker, also ranks among the wealthiest individuals with a net worth of US$197.5 billion. – Bloomberg
