Elon Musk Loses World's Richest Person Spot To Amazon Founder Jeff Bezos After Tesla Shares Slump

Elon Musk has been dethroned as the world's richest person, a title he held for over nine months, by Amazon founder Jeff Bezos. The shift in fortunes occurred as Tesla Inc shares plummeted by 7.2% on Monday, causing Musk's net worth to drop to $197.7 billion, allowing Bezos to claim the top spot with $200.3 billion.

This marks the first time since 2021 that Bezos, 60, has ascended to the top of Bloomberg's Billionaires Index. The wealth race between Musk, 52, and Bezos, with a once staggering gap of $142 billion, has been steadily closing, influenced by the divergent trajectories of Amazon and Tesla shares. Amazon's stock has more than doubled since late 2022, nearing a record high, while Tesla faces a 50% decline from its peak in 2021.

The dip in Tesla shares on Monday can be attributed to preliminary data revealing a slump in shipments from the Tesla factory in Shanghai, hitting the lowest point in over a year. Conversely, Amazon is celebrating its best online sales growth since the early days of the pandemic, propelling Bezos to the forefront of the billionaires' list.

Adding to Musk's financial woes, a recent development saw a Delaware judge striking down his colossal $55 billion pay package at Tesla. The decision sided with an investor who challenged Musk's compensation plan, deeming it the largest in history. Musk's wealth may face further blows as options, a part of the voided plan, alongside his stakes in Tesla and SpaceX, are still factored into Bloomberg's calculations of his overall wealth.

While the majority of Bezos's wealth stems from his 9% stake in Amazon, making him the company's largest shareholder, he recently offloaded 50 million shares, amounting to approximately $8.5 billion. However, Bezos remains firmly in control of his position as the world's richest person.

For Bezos, this resurgence to the top is familiar territory. He initially overtook Microsoft Inc. co-founder Bill Gates as the world's richest person in 2017. The tug-of-war for the crown between Bezos and Musk characterized much of 2021, with a massive rally in Tesla shares keeping them neck and neck. However, toward the end of the year, Bezos fell behind.

Notably, Bernard Arnault, the 74-year-old chairman of LVMH Moet Hennessy Louis Vuitton, the world's largest luxury goods maker, is also a formidable figure among the world's wealthiest, boasting a net worth of $197.5 billion.