Narrows wealth gap between Musk and Bernard Arnault, world’s two richest people
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Published Jul 20, 2023 • Last updated 1 day ago • 1 minute read
Photo by JOEL SAGET/AFP via Getty Images files Elon Musk’s fortune slumped US$20.3 billion Thursday after Tesla Inc. warned it may have to keep cutting the prices of its electric vehicles, sending shares tumbling.
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Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. The drop in net worth to US$234.4 billion further narrows the wealth gap between Musk and Bernard Arnault, the world’s two richest people, according to the Bloomberg Billionaires Index. Musk’s fortune still exceeds that of Arnault, chairman of luxury goods maker LVMH, by about US$33 billion.
Article content Musk wasn’t the only U.S. technology billionaire having a tough day. Amazon.com Inc.’s Jeff Bezos, Oracle Corp.’s Larry Ellison, former Microsoft Corp. CEO Steve Ballmer, Meta Platforms Inc.’s Mark Zuckerberg and Alphabet Inc. co-founders Larry Page and Sergey Brin shed a collective US$20.8 billion in net worth as the tech-heavy Nasdaq 100 fell 2.3 per cent.
Shares of Austin-based Tesla dropped 9.7 per cent to US$26.90 in New York, the most since April 20, after the company warned of more hits to its already-shrinking profitability. Months of markdowns have taken a toll on automotive gross margin, which fell to a four-year low in the second quarter. Musk said Wednesday Tesla will have to keep lowering prices if interest rates continue to rise.
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Recommended from Editorial Tesla stock sinks as Elon Musk warns of more blows to profitability Elon Musk says Twitter cash flow still negative, lifts rate limit Tesla skeptics push back after sizzling $500-billion rally Musk, 52, derives his wealth primarily from his stake in the EV manufacturer, as well as his holdings in Space Exploration Technologies Corp. and Twitter Inc. His wealth increased about US$118 billion this year through Wednesday, as shares of Tesla climbed 136 per cent.
Arnault, 74, has seen his net worth increase by US$39 billion this year to US$201.2 billion. Shares of Paris-based LVMH have gained 26 per cent in 2023.
—With assistance from Jack Witzig.
Bloomberg.com