After a significant decline in the value of his shares in the electric vehicle manufacturer Tesla this year, Elon Musk is no longer the richest man in the world.

According to Forbes and Bloomberg, Bernard Arnault has surpassed Musk for the top slot.

Elon Musk Dethroned as World's Richest Person

Elon Musk, the company's CEO and largest shareholder is said to own an estimated 14% interest in Tesla. In October, he finished a $44 billion takeover of the social media site Twitter.

Forbes estimates that Musk is currently worth $178 billion. In contrast, Bernard Arnault is worth $188 billion. After months of legal fighting, Musk's Twitter deal was finally finalized. Some have attributed Tesla's share price decline to the takeover's distraction.

Musk made his $44 billion offer in April after investing in Twitter at the beginning of the year, however many thought it was too much money. He backed out of the agreement in July, citing worries about the volume of phony accounts on the network, BBC reported.

In the end, Twitter officials filed a lawsuit to have Musk honor his promise. The "circus" around the Twitter deal, according to investor Dan Ives from Wedbush Securities, has hurt Tesla's stock price.

In order to finance his acquisition, Musk sold shares of Tesla for billions of dollars, which aided in the share price decline. Investors are also concerned that when the economy declines, higher financing costs deter consumers, and rival companies increase their electric vehicle offers, demand for the company's electric cars may slow.

Recalls and government inquiries into crashes and its autopilot system have both hurt Tesla. Tesla is a major component of Musk's fortune, which caused him to lose billions when the company's shares plunged 6.3 percent on Monday and another 4.1 percent on Tuesday.

Between stock and options, he has around 25% of the equity in the electric vehicle manufacturer. After the company's financial achievements significantly fueled Musk's ascent to the top of the list, Tesla's market valuation has decreased by more than half this year.

But in mid-September, Tesla's share price started to significantly decline as Musk got closer to buying Twitter. Part of Musk's $44 billion acquisition deal to purchase the social media company includes loans backed by the equity of his Tesla company.

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Who is Bernard Arnault?

The French tycoon behind LVMH, a leader in luxury products, is Bernard Arnault. For the first time, Arnault stands at the top of the list of the richest people. Nobody from France or all of Europe has ever claimed to be the owner of the world's largest fortune.

Per Bloomberg via MSN, the 73-year-old has consistently ranked high in wealth lists, but unlike Musk and other flamboyant billionaires, he rarely appears in public and doesn't engage in social media on a personal level.

Although LVMH Moet Hennessy Louis Vuitton SE exudes grandeur, including 75 brands like Tiffany & Co., Christian Dior, and Dom Perignon, he has chosen to keep a quiet profile in a nation where flashy displays of wealth are frowned upon.

Arnault, whose net worth is estimated to be $170.8 billion, has harnessed European craftsmanship to make LVMH the largest conglomerate of luxury products in the world.

It serves as a training ground for ambitious designers looking to establish themselves, like Phoebe Philo at Celine, Raf Simons at Christian Dior, and the late Virgil Abloh at Louis Vuitton and Marc Jacobs at Louis Vuitton. They all added originality to the historical brands, keeping them appealing to young customers.

Arnault's fortune is down roughly $7.2 billion in 2022 due to deteriorating markets, but he has done better than the tech billionaires who control the world's rich list. That's because even as the Covid-19 problem has subsided, demand for luxury goods has held steady.

Sales at Paris-based LVMH this year totaled €64 billion ($68 billion), a considerable improvement from the pandemic's worst effects in 2020. According to the company's annual report, Arnault and his family hold around 48% of the company's shares and 64% of the voting rights.

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