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Spectacular stock market rise for LVMH and Tesla: Arnault and Musk richer than ever!

© Frederic J. Brown/AFP

Bernard Arnault and Elon Musk saw their fortunes soar on Tuesday, November 14, driven by the rather spectacular rise in the value of their companies LVMH and Tesla of which they are major shareholders. As you will see, this progression is dazzling and perfectly reflects the favorable economic context for these two financial magnates. For the moment, their financial future looks rather bright.

A historic day on the stock market

LVMH shares increased by 2.7% in 24 hours, and 6.1%for Tesla. Colossal increases, especially when it comes to the two richest men in the world. The impact on their personal fortunes is equally impressive. Elon Musk saw his jackpot increase by $9.8 billion while Bernard Arnault will have to make do withonly7.4 billion.

These staggering gains are part of an annual trend, also dizzying, which therefore brings their assets to 221.1 billion dollars for Musk and 170.3 billion for Bernard Arnault.

A more than positive development, which can largely be attributed to a drop in American inflation, welcomed with open arms by Wall Street since yesterday. A very beneficial phenomenon for the growth stocks of LVMH and Tesla. The latter saw its share price collapse seriously in October, which must make the news even more pleasant for its big boss.

The key factors of this rebound

First of all, the economic situation was more favorable than expected, with inflation across the Atlantic lower than initial forecasts. A phenomenon which has caused a fall in American long-term rates, which are an important indicator of the cost of credit over long periods. The two companies then benefited greatly from this recovery movement.

LVMH benefited from hopes of a potential stabilization of the Chinese market. Indeed, the luxury sector is completely dependent on the country: the Chinese clientele of LVMH group brands represents between 20 to 30% of total turnover. Even if the world leader had to face some poor performances during the third quarter, this was not enough to disrupt it and analysts remain very optimistic for the months to come.

Tesla, for its part, has slightly lowered its margins by developing a rather aggressive tactic of a price war, including the announcement of a car at 25,000 euros for the 8217;Europe is part. A strategy which has visibly paid off, given the spectacular rise in its shares.

The year 2023, at least the end of it, is a good vintage for the two captains of industry. A victory to which they certainly toasted, one by toasting the USA, the other to China. Two rooms, two atmospheres.

  • The shares of LVMH and Tesla jumped by 2.7% and 6.1% respectively on the day of November 14.
  • Bernard Arnault now sees his fortune rise to 170.3 billion dollars, and 221.1 billion for Elon Musk.
  • A result partly due to the slowdown in American inflation (Tesla) and the stabilization of the Chinese market. (LVMH)

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Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116