Tesla continues to slide down the ranks of the world’s most valuable companies as its share price continues to decline through 2023.
Tesla shares fell 12.2% on Tuesday, after the electric car company failed to meet fourth quarter delivery expectations. The company’s shares have fallen 72.7% in the past year.
The drop in share price also puts Tesla behind LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury group. As of Wednesday, LVMH’s market capitalization was $389 billion. Unlike Tesla, LVMH shares have largely held steady, with a 2.5% decline over the past year after recovering from a summer slump.
In October 2021, Tesla became one of the few US companies with a market valuation over $1 trillion, with companies like Apple, Microsoft, Alphabet and Amazon. (Amazon has also since fallen out of the $1 trillion club).
Tesla faces slow demand for its electric vehicles in markets such as the US and China, and is reportedly slowing production at its factories. Tesla investors blame too Musk’s concurrent leadership of the Twitter for the share price to fall. Musk, for his part, blamed the interest rate policy from the US Federal Reserve for the troubles on Tesla’s part.
Arnault vs. Musk
LVMH co-founder and CEO Arnault replaced Tesla CEO Musk as the richest man in the world in mid-December. The change in rankings is due to a big slide in Tesla shares, which make up a large part of Musk’s net worth.
As of Wednesday, Arnault had a fortune of about $169 billion, compared to Musk’s $128 billion, it was estimated. Bloomberg.
Musk’s fortune, at its peak in November 2021, was worth $338 billion. Arnault, at the time, was worth $172 billion.
The Tesla CEO’s fortune continues to decline, dropping by more than $9 billion on Tuesday alone. (India’s Gautam Adani, currently the world’s third-richest person, has a fortune of $119 billion, according to Bloomberg)
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