Elon Musk is no longer the world’s richest person

Elon Musk, who held the title of the world’s richest person for over nine months, has now been surpassed by Jeff Bezos on the Bloomberg Billionaires Index. This shift occurred as Tesla Inc. shares dropped 7.2% on Monday, leaving Musk with a net worth of $197.7 billion, while Bezos’ fortune stands at $200.3 billion. Bezos, the 60-year-old founder of Amazon Inc., has reclaimed the top spot for the first time since 2021.

The wealth disparity between Musk, aged 52, and Bezos, once as wide as $142 billion, has been narrowing due to diverging trends in Amazon and Tesla shares. While both companies are part of the select group known as the Magnificent Seven stocks driving US equity markets, Amazon shares have surged over 100% since late 2022, nearing a record high, while Tesla has declined by about 50% from its peak in 2021.

Tesla’s stock decline on Monday was attributed to a drop in shipments from its Shanghai factory, reaching a low not seen in over a year, while Amazon reported its strongest online sales growth since the early days of the pandemic.

Musk’s wealth faces further potential setbacks following a Delaware court’s ruling against his $55 billion compensation package at Tesla, where he serves as CEO. The decision favored an investor who contested Musk’s extravagant compensation plan, which was previously the largest in history.

Included in the nullified plan were options that constitute one of Musk’s significant assets, alongside his shares in Tesla and SpaceX. Despite the court ruling, the Bloomberg index continues to factor them into its assessment of his wealth.