Jeff Bezos' fortune soared to $200.3 billion as Tesla shares stumbled, causing Musk's net worth to decline to $197.7 billion.
In a dramatic shift of financial rankings, Jeff Bezos has reclaimed his title as the world's richest person, dethroning Elon Musk after more than nine months. This change in fortune comes as shares of Tesla Inc., led by Musk, experienced a significant drop of 7.2% on Monday. As a result, Musk's net worth now stands at $197.7 billion, while Bezos' fortune soared to $200.3 billion, according to the Bloomberg Billionaires Index.
This reversal marks the first time since 2021 that Jeff Bezos, the visionary behind Amazon.com Inc., has topped Bloomberg's ranking of the wealthiest individuals. The substantial wealth gap between Musk, aged 52, and Bezos, aged 60, which had once reached a staggering $142 billion, has gradually narrowed as the stock performances of Amazon and Tesla moved in contrasting directions.
While both Amazon and Tesla are prominent constituents of the "Magnificent Seven" stocks that have propelled US equity markets, Amazon's shares have more than doubled since late 2022 and are on the brink of reaching a record high. In contrast, Tesla shares have declined by approximately 50% from their peak in 2021.
Tesla's recent setback was further exacerbated by preliminary data indicating a slump in shipments from its Shanghai factory to the lowest level in over a year. Meanwhile, Amazon has thrived, boasting its highest online sales growth since the early stages of the pandemic.
Elon Musk's financial outlook faces additional challenges following a Delaware judge's ruling invalidating his $55 billion pay package at Tesla, where he serves as chief executive. This decision favored an investor who contested Musk's compensation plan, which had been deemed the largest in history. Musk's significant assets include options included in the annulled plan, in addition to his stakes in Tesla and SpaceX, all of which contribute to his wealth as calculated by the Bloomberg index.
The bulk of Jeff Bezos's fortune stems from his remarkable 9% stake in Amazon, making him the largest shareholder in the online retail giant. Despite recently selling 50 million shares valued at approximately $8.5 billion, Bezos retains his dominant position in the company.
For Bezos, reclaiming the top spot in the wealth rankings is a familiar achievement. He initially surpassed Bill Gates as the world's richest person in 2017. However, intense competition from Musk, fueled by a remarkable surge in Tesla shares, characterized much of 2021. Towards the end of that year, Bezos fell behind significantly, only to regain the coveted No. 1 position once again.
In addition to Bezos and Musk, Bernard Arnault, the 74-year-old chairman of LVMH Moet Hennessy Louis Vuitton, also holds a prominent position among the world's wealthiest individuals, with a net worth of $197.5 billion.
