Mark Zuckerberg surpassed Elon Musk on Friday to become the third-wealthiest individual globally, marking the first time since 2020 that these rival billionaires have occupied these positions.
Mr Musk, who previously held the top position on the Bloomberg Billionaires Index as recently as early March, dropped to fourth after Reuters reported that Tesla had scrapped plans for a more affordable car, resulting in a decline in share value. Mr Musk refuted the report.
This development followed earlier news in the week that Tesla’s vehicle deliveries had decreased in the three months leading up to March, marking their first year-over-year decline since the early stages of the Covid pandemic.
Mr Musk’s fortune has diminished by $48.4B this year, whereas Mr Zuckerberg has seen an increase of $58.9B in his wealth as Meta Platforms surges to new highs, including a record on Friday.
This occurrence marks the first instance since November 16, 2020, that Mr Zuckerberg has entered the top three on Bloomberg’s ranking of the wealthiest individuals, when his net worth stood at $105.6B compared to Mr Musk’s $102.1B, according to The National News.
Presently, Mr Musk’s net worth stands at $180.6B, whereas Mr Zuckerberg’s is $186.9B.
The reversal in the wealth gap between these two billionaires, which reached as high as $215B in November 2021, highlights how electric vehicle stocks, once highly coveted, have been overshadowed by Big Tech, particularly in areas related to artificial intelligence.
Tesla shares have plummeted by 34% this year, making it the worst-performing stock on the S&P 500 Index, facing challenges such as a global slowdown in EV demand, increased competition in China, and production issues in Germany. Conversely, Meta has surged by 49%, buoyed by strong quarterly earnings and excitement surrounding the company’s AI ventures, making it the fifth-best performer on the S&P 500.
Beyond their wealth, the rivalry between the two billionaires extends to public spats, notably when Meta launched Threads, a social media platform competing with X, previously known as Twitter. Their rivalry even saw discussions about a possible cage fight last year, with Mr Musk, 52, recently expressing readiness to engage Mr Zuckerberg, 39, “anywhere, anytime.”
Mr Musk’s net worth could further decline following a Delaware judge’s dismissal of his $55B Tesla pay package. The Bloomberg Billionaires Index continues to factor in the options from this pay package, one of Mr Musk’s major assets, in its wealth calculations.
At present, Bernard Arnault, chairman of luxury giant LVMH Moet Hennessy Louis Vuitton, and Amazon founder Jeff Bezos occupy the first two spots on Bloomberg’s wealth ranking with fortunes of $223.4B and $207.3B, respectively.