Why Two Richest Men, Elon Musk And Bernard Arnault Lost Whopping N689.58 billion In One Day

On Friday, the two richest people in the world, Tesla majority shareholder, Elon Musk, and Louis Vuitton Moët Hennessy (LVMH), Bernard Arnault, lost a whopping of N689.58 billion in one day.

Musk, who is the wealthiest person in the world, accounted for the highest loss of N509.85 billion ($1.2 billion), with his estimated total networth dropping from $219.3 billion to $218.1 billion.

While Arnault saw his networth dwindle by -0.29% while filing this report, after losing N179.72 billion ($423 million). His fortune fell to $146 billion, maintaining his position on the Forbes Billionaire Index.

Prime Business Africa understands that Musk’s wealth dropped as a result of the dip in Tesla stock, which has crashed by -43.84% year-to-date, and trades around $673.74 per share on Friday.

Arnault suffered the loss in his networth following the fall of his company’s share, which is down -20.66% year-to-date, losing €151 in the last six months, to sell at $580 in the capital market today, below the €731 LVMH stock was valued for in early January.

Their wealth is suffering from declining investor confidence in the capital market amid soaring inflation that the global economy is experiencing, which has led to the private sector projecting an impending recession.

Investors are seeking a more efficient asset to help hedge inflation and keep the value of their investment or grow it, considering the United States S&P 500 Index, a stock market index tracking the stock performance of 500 large companies in US, is down -20.6% between January to June.

This is the worst performance of the S&P 500 Index in 50 years, reflecting investors are taking out their money from the capital market, amid a period the United States recorded its highest inflation rate of 8.6%, the highest in 40 years.