Elon Musk overtakes Arnault and Bezos as world's richest again
What's the story
Elon Musk, the founder of Tesla and SpaceX, has become the world's richest person with a net worth of $210.7 billion, according to Forbes Real Time Billionaires list. Bernard Arnault of LVMH is in second place with $201 billion while Amazon CEO Jeff Bezos holds third position with $197.4 billion. Musk's wealth primarily stems from his stakes in Tesla, SpaceX, and social media platform 'X'.
Wealth sources
Musk's wealth surge attributed to Tesla and 'X'
Musk's fortune has seen significant growth due to the rise in Tesla's market capitalisation during 2020 and 2021. His acquisition of Twitter in October 2022, which he later renamed 'X', also contributed to his wealth. Following Musk on the Forbes list are Mark Zuckerberg, Larry Ellison, Larry Page, Sergey Brin, Warren Buffett, Bill Gates, and Steve Ballmer with net worths ranging from $163.9 billion to $123.1 billion.
Legal trouble
Musk faces lawsuit over alleged insider trading
Musk is currently embroiled in a lawsuit filed by Tesla shareholder Michael Perry, accusing him of insider trading. The lawsuit alleges that Musk "improperly benefited" by about $3 billion from selling over $7.5 billion in Tesla shares before disappointing production and delivery numbers were made public. Perry claims that "Musk exploited his position at Tesla," breaching his fiduciary duties to the company.
Legal claims
Lawsuit seeks return of profits from Musk's trades
The lawsuit accuses Tesla's directors of breaching their fiduciary duty by allowing Musk to sell the shares. Perry argues that Musk had knowledge of lower-than-expected numbers in mid-November due to his access to real-time data. The lawsuit demands that "Musk return the profits made from these trades," asserting that if he had waited until after the release of adverse news, his sales would have netted him less than 55% of the amounts realized from his November and December 2022 sales.