CEO of global luxury goods company LVMH, Bernard Arnault and
his family’s net worth snowballed to $207.8 billion after an increase of $23.6
billion on Friday, exceeding Musk’s $204.5 billion mark, according to Forbes
real-time billionaires list.
This development trails Tesla suffering a blow in the stock
market on Thursday (Jan 25), plummeting to 13 per cent which made Musk lose
more than $18 billion in net worth, according to a Forbes report.
In advantage, LVMH shares rose by over 13 per cent on Friday
around 11 am immediately after the news of strong sales surfaced.
LVMH’s market cap reached $388.8 billion on Friday, compared
to Tesla’s $586.14 billion market cap, as per Forbes.
Tesla shares on Thursday dropped by over 12 per cent after
Musk cautioned that the sales growth would go down despite slashing the prices
that have already caused a dent in the margins of the world’s most valuable
automaker.
Musk on Wednesday said that growth would be “notably lower”
as Tesla shifts its focus on making cheaper next-generation electric vehicles
at its Texas factory in the second half of 2025.
However, he said that speeding up the production of the new
model would pose challenges as it would involve the latest technologies.
“The Tesla headlines have essentially gone from bad to
worse,” said TD Cowen analysts, noting that the fourth-quarter revenue and
profit were also below expectations.
“The problem for Tesla is any significant attempt to boost
sales from here on will probably need to be achieved at the cost of further
falls in operating margin, due to having to compete with BYD in China, as well
as increased competition elsewhere,” said Michael Hewson, chief market analyst
at CMC Markets.