Tesla Stock Recovers to $200 Level After About Two Months
Elon Musk, CEO of Tesla, has reclaimed the title of 'world's richest person,' surpassing Bernard Arnault, chairman of the French luxury group Louis Vuitton Mo?t Hennessy (LVMH).
According to the Bloomberg Billionaires Index on the 31st of last month (local time), Musk's net worth was estimated at $192 billion (approximately 255 trillion won), increasing by $1.98 billion in just one day. Compared to the beginning of the year, it rose by $55.3 billion.
Arnault, who dropped to second place, has a net worth of $187 billion, down $5.25 billion in a single day. Although Arnault's net worth expanded by $24.5 billion earlier this year, it has recently been declining.
The contrasting fortunes of Musk and Arnault were driven by LVMH's stock price. With the ongoing economic slowdown in China, the world's largest luxury market, future growth is expected to slow, causing the stock price to fall. LVMH's stock dropped 2.6% on the Paris Stock Exchange that day. Over the past month, LVMH's stock has fallen nearly 10%. On the 24th of last month, the stock plunged 5% in one day, wiping out $11.2 billion of Arnault's net worth on that day alone.
On the other hand, Musk's assets have increased as Tesla's stock, which accounts for 71% of his holdings, has been on the rise. Tesla's stock has surged nearly 90% since the beginning of the year. In April, Tesla released first-quarter results that fell short of expectations and announced it would maintain its price reduction strategy. The stock dropped more than 10% but then rebounded after Musk appointed a new CEO for Twitter and showed a focus on Tesla's business.
In particular, Musk's visit to China, where Tesla's largest factory is located, starting the day before, to expand business attracted investors' attention. The stock rose 4.14% the previous day and 1.38% on the day, marking consecutive days of gains. As a result, Tesla's stock price recovered to the $200 level for the first time in over two months since March 31.
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