Elon Musk has lost his spot as the world's richest person for the second time in a week, with Louis Vuitton Moet Hennessy (EPA:MC) part-owner Bernard Arnault reclaiming the title.
Arnault and his family topped Forbes’ rich list, boasting a net worth of US$187bn compared to Musk’s US$176bn, reflecting a steady decline in Tesla’s share price while LVMH’s luxury goods sales boom.
After completing his takeover of Twitter Inc (NYSE:TWTR) for US$44bn in October, new chief executive Musk has been battling to turn the social media into a profit-making business.
He has also been unloading his Tesla stock, where most of his wealth comes from, to fund the buyout with his stake in the electric vehicle company being reduced to an estimated 14%, something investors have criticised.
“His performance demonstrates how the Tesla Board has failed to hold Musk accountable - it’s time for shareholders to act,” said Antoine Argouges, chief executive of activist shareholder Tulipshare.
Previously, Wedbush called on Musk to end his “Twitter madness,” suggesting he was abandoning Tesla at a crucial time.
Meanwhile, Frenchman Arnault, who is also chief executive of Louis Vuitton, has seen his brand benefitting from a resilience of the luxury goods market in the face of the current global economic downturn.
Consultants Bain & Co suggested in October that 95% off luxury brands should see positive sales growth this year.
Louis Vuitton is currently the world’s most valuable luxury brand, according to Statista, at US$124.3bn.