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Elon Musk Is Now The World’s Second Richest Man. New No. 1 Is…

Elon Musk tried for months to get out of the Twitter deal, but failed.

Elon Musk, once worth a whopping $340 billion, has been replaced by Bernard Arnault as the world’s richest person.

Elon Musk, 51, has seen his fortune fall by more than $100 billion since January to $168.5 billion, according to the Bloomberg Billionaires Index. As of 10:20 am in New York, that’s less than the $172.9 billion net worth of Arnault, 73, whose wealth stems largely from his 48% ownership of fashion giant LVMH.

Musk’s fall from the top of the rankings – the first time that has happened since he was number 2 in September 2021 – closes a tumultuous year for the frenetic billionaire. He shocked the world in April with his offer to take Twitter private for $44 billion, a brazen demonstration of how the wealthiest individuals could manage their vast fortunes.

But his deal coincided with the Federal Reserve and other central banks embarking on their most aggressive round of monetary tightening in a generation, driving the valuations of high-flying companies like Musk’s Tesla Inc. were reduced. Shares of the electric car maker are down more than 50% this year. .

Musk tried for months to get out of the Twitter deal, but failed. He unloaded more than $15 billion in Tesla stock — about $8.5 billion in April, then another $6.9 billion in August — to raise enough money to fund the purchase.

After he completed the Twitter acquisition in October, the Bloomberg wealth index lost $10 billion from his fortune, as shares of similar companies have fallen since he made his bid.

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Musk has promised to flip the social media platform, but he faces several challenges — some of his own making. He denounced Apple Inc. and threatened to keep Twitter out of the App Store at a time when other companies were already pulling their ads off the site.

Meanwhile, Twitter is about to face annual interest charges that exceed a measure of its revenue for all of 2021. Musk’s bankers are considering giving him new margin loans backed by Tesla stock to replace some of the high-interest debt he’s been piling on Twitter. This is reported by Bloomberg News.

Arnault, the new richest person in the world, is drama free compared to Musk.

Arnault has long been a mainstay near the top of the wealth rankings, but his fortunes never grew at the exponential pace of American tech billionaires. Now his empire is holding up as Mark Zuckerberg, Jeff Bezos and Alphabet Inc.’s Larry Page and Sergey Brin see their wealth eroded by rising interest rates.

Paris-based LVMH Moet Hennessy Louis Vuitton’s designer clothes, fine wines and retail have benefited from pent-up demand as Covid-related shopping and travel restrictions were lifted in most countries. Arnault’s brands cater to the well-to-do – from Christian Dior and Fendi to jewelers Bulgari and Tiffany & Co., and champagne house Moet & Chandon.

(Except for the headline, this story has not been edited by NDTV staff and is being published from a syndicated feed.)

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