Why Elon Musk lost his title as world’s richest person?

Forbes released their list of real-time billionaires in 2023. While Reliance Industries' Mukesh Ambani regained his seat as Asia's richest, Tesla and Twitter chief Elon Musk emerged as the looser second-biggest loser after Jeff Bezos. 

Elon Musk lost his top , had it worse. He lost his title of world's richest person to Bernard Arnault, the French luxury goods tycoon. 'Nearly half of all billionaires are poorer than they were a year ago', Forbes stated in their blog post on the richest billionaires of the world. ‘Globally, we counted 2,640 ten-figure fortunes, down from 2,668 last year’ Forbes commented. 

More than 250 people who were on last year’s list didn’t appear on this year’s, including Kanye West, who lost his Adidas deal, and embattled FTX founder Sam Bankman-Fried, who lost 94% of his wealth in one day.

Why did Elon Musk loose?

Elon Musk, whose real time net worth is $192.8 billion, lost another $1.4 billion since the time Forbes released their list on Tuesday, although he retained his second spot on the list. Musk, 51, with USD 180 billion 2023 Billionaires Net Worth, USD 39 billion less than a year ago, is now No. 2.

Elon Musk cofounded six companies including electric car maker Tesla, rocket producer SpaceX and tunneling startup Boring Company.

According to Forbes, Elon Musk fell from number one position to the second position after his pricey acquisition of Twitter helped sink Tesla shares. 

This fall of Elon Musk on the world's richest billionaire's list should not come as a surprise because, the Tesla CEO's position wobbled on the Forbes’ “Real-Time Billionaires” list, which is updated daily, for the past several months.

Forbes explained that Musk’s wealth had fallen because his $44 billion Twitter purchase, funded by Tesla shares, scared investors and sent Tesla stock sinking sharply last year. Tesla gained much of those losses back this year but is still significantly lower than before Musk bought Twitter.

Forbes said that “Musk has mostly tweeted himself out of the top spot on the ranks” because Tesla shares are down 50% since his Twitter takeover a year ago. SpaceX is a bright spot for the billionaire, the magazine notes, since its valuation has increased $13 billion to $140 billion over the past year.

Twitter's board agreed to sell the company to Musk for $44 billion in April 2022, after he disclosed a 9.1% stake and threatened a hostile takeover.

The deal closed in October 2022 after Musk tried to back out and Twitter sued. Musk now owns an estimated 74% of the company.

Elon Musk- About him

Elon Musk cofounded six companies including electric car maker Tesla, rocket producer SpaceX and tunneling startup Boring Company.

He owns about 23% of Tesla between stock and options, but has pledged more than half his stock as collateral for loans.

SpaceX, founded in 2002, is worth $127 billion after a funding round in May 2022; it quadrupled its value in three years.

Boring Company, which aims to defeat traffic, raised $675 million in April 2022 at a $5.7 billion valuation.

Jeff Bezos worst looser

No one lost more than Jeff Bezos as Amazon shares crashed by 38 per cent. The drop lopped USD 57 billion from Bezos' fortune and knocked him from No. 2 in the world in 2022 to No. 3 this year.

However, the Amazon owner's net worth of $127.0 Billion added another $1.5 Billion on Wednesday.