For the world’s top billionaires, fluctuations in wealth are not only influenced by business operations, but also by political factors. Recently, the title of the world’s richest person temporarily shifted from French luxury conglomerate owner Bernard Arnault to Elon Musk. The fortune of Nvidia founder Jensen Huang skyrocketed, while Chinese billionaires faced increasing challenges.
According to the Forbes Global Billionaires List released in early April 2024, the reigning world’s richest person at the time was Bernard Arnault, the owner of the luxury giant LVMH Group. Arnault had held the top spot for two consecutive years, mainly due to his family inheritance and overseeing 75 fashion and cosmetics brands including Louis Vuitton and Sephora.
However, according to a report by global consulting firm Bain, the global luxury goods market is facing its weakest performance since the peak of the pandemic. Bain’s report on June 18th revealed that personal luxury brands are in crisis due to macroeconomic pressures, with a notable slowdown in demand in China, where economic uncertainties are pressuring middle-class shoppers to be more cautious about extravagance.
Meanwhile, French President Macron’s sudden decision to dissolve the National Assembly and advance elections to the end of the month on June 9th caused turmoil in France, with uncertainty looming over the future and a sharp market selloff. According to the Bloomberg Billionaires Index, Arnault’s fortune has now dwindled to $200.4 billion, dropping him from the top of the list to third place.
On the flip side, Elon Musk could not contain his excitement when Tesla shareholders approved the CEO’s compensation plan on June 14th, exclaiming his gratitude to them, “Oh my, I love you guys so much!”
Tesla shareholders voted in favor of a $55.8 billion stock option proposal with around 72% approval, although Musk’s receipt of this compensation remains uncertain due to a court ruling in January deeming the plan invalid. However, with Tesla’s shareholders reapproving the plan, Musk’s assets surged to $210.1 billion, propelling him back to the top of the world’s richest list.
In addition to manufacturing top-selling electric vehicles worldwide, Musk oversees five other companies: SpaceX, X social platform (formerly Twitter), Boring Co., Neuralink, and xAI, an artificial intelligence enterprise. The latest round of financing valued xAI at over $24 billion, contributing to Musk’s significant wealth increase.
Ranked second in wealth is Amazon founder Jeff Bezos, with a fortune of $206.6 billion. With the general rise in tech stocks, Amazon’s stock price is nearing historical highs. While Amazon’s primary revenue source is e-commerce, its cloud computing platform has become one of the world’s largest, leading to rapid revenue growth.
The fastest rising billionaire in recent years is undoubtedly Nvidia’s founder and CEO Jensen Huang.
Reports show that Huang was ranked 546th on the global billionaires list in 2019 but had surged to 76th place by the end of last year with a net worth of $21 billion. As of June 18th, Huang’s net worth had reached approximately $119 billion, securing him the 11th spot on the global billionaires list, owing to Nvidia’s soaring stock price.
Nvidia’s chips play a pivotal role in the artificial intelligence boom. US-based AI expert Dr. Jason Ma previously told media that Nvidia holds about 80% of the computational power demanded by AI.
Driven by the competition among major tech companies to advance AI, the surge in chip purchases has propelled Nvidia’s revenue to unprecedented levels. Investor demand for AI investments has also led to numerous tech stocks hitting historic highs.
In the 2024 Forbes Global Billionaires List, the number of billionaires in mainland China has dropped for the third consecutive year, with 406 billionaires remaining, ranking second globally, after the United States.
The current richest person in China is still bottled water magnate and founder of Nongfu Spring, Zhong Shanshan, followed by Zhang Yiming, the founder of ByteDance, the parent company of TikTok, and Huang Zheng, the founder of Pinduoduo, the parent company of Temu.
China’s richest primarily focus on daily consumer products, which sets them apart from billionaires in other countries. Zhong Shanshan faced rare online backlash in China this year.
After the founder of Wahaha, Nongfu Spring’s competitor, passed away in late February, Zhong Shanshan published a remembrance article which led to a surge in online criticism towards Nongfu Spring and Zhong Shanshan. The brand, once a national treasure, was vilified by the public, leading to a significant drop in sales and a continuous decline in stock prices. On March 13th, Zhong revealed that the unfounded online attacks caused his mother’s passing. The orchestrated incident appears to have been manipulated by hidden forces, possibly linked to state pressure.
Zhang Yiming, the second-ranked billionaire, faced challenges as well. Towards the end of April, US President Biden signed a bill requiring ByteDance to divest TikTok as a law, demanding the separation of TikTok’s assets in the US by January 19th next year, or the app used by 170 million Americans would be banned.
However, ByteDance stated that divestment is “impossible from a technological, commercial, or legal perspective.” The company can only hope for a court order to block the law, but the outlook seems bleak.
As for Huang Zheng’s Temu, which relies on extensive advertising and low-cost marketing to expand its market, their aggressive marketing strategies have caught the attention of the US, EU, and Southeast Asia. On May 31st, the EU included Temu in the “super large online platform” category under the Digital Services Act, subjecting Temu to the highest level of digital scrutiny. Huang Zheng is under immense pressure.
Amidst financial shortages, the Chinese government’s “thirty-year retrospective tax investigation” is targeting businesses, posing a threat to all Chinese billionaires. According to the latest “Henley Private Wealth Migration Report” released by the international immigration consultancy Henley & Partners, China is expected to lose 15,200 millionaires this year, leading the world in outflow of wealthy individuals.