In a surprising turn of events, Mark Zuckerberg has surpassed Elon Musk in the billionaire rankings for the first time since 2020. This marks a significant shift in the positions of these rival tycoons.
The change came on Friday when Zuckerberg climbed to the third position on the Bloomberg Billionaires Index, overtaking Musk. Musk, who had held the top spot as recently as early March, slipped to fourth place after reports emerged that Tesla Inc. had scrapped plans for a more affordable car, causing a dip in Tesla's stock. Musk refuted the report, but it added to the woes of Tesla, which had earlier faced a decline in vehicle deliveries for the first time since the onset of the Covid pandemic.
While Musk's wealth has dwindled by $48.4 billion this year, Zuckerberg has seen a substantial increase of $58.9 billion in his fortune, propelled by the soaring value of Meta Platforms Inc., which hit new highs, including a record-breaking peak on Friday.
Zuckerberg's ascension to the top three billionaires on Bloomberg's ranking is noteworthy, as it hasn't happened since November 16, 2020, when he was valued at $105.6 billion, compared to Musk's $102.1 billion. Currently, Zuckerberg's net worth stands at $186.9 billion, surpassing Musk's $180.6 billion.
The reversal in their wealth positions highlights a broader trend where big tech, particularly companies focused on artificial intelligence, have overshadowed once-prominent electric vehicle stocks like Tesla.
Tesla's shares have plummeted by 34% this year, making it the worst performer in the S&P 500 Index. The company has been grappling with a global slowdown in electric vehicle demand, heightened competition in China, and production challenges in Germany. On the other hand, Meta has experienced a 49% surge in its stock value, driven by strong quarterly earnings and investor enthusiasm for its AI ventures, making it the fifth-best performer on the S&P 500.
Beyond their financial standings, the rivalry between Musk and Zuckerberg extends to public spats. Meta's launch of Threads, a social media platform seen as a competitor to Musk's ventures, intensified their feud. The rivalry even reached the point of discussing a possible "cage fight" between the two billionaires.
Musk's fortunes may face further setbacks following a Delaware judge's ruling against his $55 billion Tesla compensation package. The Bloomberg Billionaires Index still includes the options from that package, which are a significant component of Musk's wealth.
At the top of Bloomberg's wealth ranking are Bernard Arnault, chairman of luxury giant LVMH Moet Hennessy Louis Vuitton, and Jeff Bezos, founder of Amazon.com Inc., with fortunes of $223.4 billion and $207.3 billion, respectively.
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