On Friday, a significant shift in the global wealth rankings occurred as Mark Zuckerberg surpassed Elon Musk, claiming the third spot on the prestigious Bloomberg Billionaires Index. This remarkable event marked the first time since 2020 that these prominent billionaires have traded places on this esteemed index, signifying a noteworthy change in the hierarchy of global wealth.
The transition unfolded following Elon Musk’s descent to the fourth position on the index, relinquishing his prior standing as the top billionaire as recently as early March. Musk’s decline was precipitated by reports from Reuters indicating that Tesla Inc. had abandoned plans for a more affordable car, resulting in a downturn in Tesla’s stock prices. This setback was compounded by news of a decline in Tesla’s vehicle deliveries for the first quarter of the year, marking the company’s first year-over-year drop since the onset of the COVID-19 pandemic.
In contrast, Mark Zuckerberg’s fortunes experienced a substantial upsurge, propelled by the success of Meta Platforms Inc., his brainchild. Meta’s stock witnessed unprecedented growth, including a record-breaking performance on Friday, catapulting Zuckerberg’s net worth to an impressive $186.9 billion. Zuckerberg’s resurgence in the upper echelons of wealth rankings holds significant weight, particularly considering his absence from the top three since November 16, 2020, when he last held this position with a net worth of $105.6 billion. Meanwhile, Elon Musk’s current net worth stands at $180.6 billion, having declined by $48.4 billion this year.
This reversal in the wealth gap between Musk and Zuckerberg underscores a broader trend wherein major tech companies, particularly those engaged in artificial intelligence, have overshadowed once-dominant electric vehicle stocks. Tesla’s shares have plummeted by 34% this year, making it the worst-performing stock in the S&P 500 Index. The challenges facing Tesla include a global downturn in electric vehicle demand, heightened competition in key markets like China, and operational issues in Germany. On the contrary, Meta has experienced a remarkable surge of 49%, driven by strong quarterly earnings and enthusiasm surrounding the company’s AI initiatives, positioning it as the fifth-best performer on the S&P 500.
Beyond their financial rivalry, Musk and Zuckerberg have been embroiled in a highly publicized feud, particularly intensified by Meta’s launch of Threads, a social media platform directly competing with Musk’s ventures. This rivalry has even included playful banter about a potential cage fight, a notion recently revisited by Musk, who expressed his readiness to confront Zuckerberg “anywhere, anytime.”
Despite potential setbacks, such as a Delaware judge’s ruling invalidating his $55 billion Tesla pay package, Musk’s financial situation remains formidable. Bloomberg’s Billionaires Index continues to consider options from the pay package, which remain among Musk’s significant assets.
At present, Bernard Arnault, chairman of luxury conglomerate LVMH Moet Hennessy Louis Vuitton, and Jeff Bezos, founder of Amazon.com Inc., maintain their positions as the first and second wealthiest individuals on Bloomberg’s wealth ranking, with fortunes of $223.4 billion and $207.3 billion, respectively.
