Ellison Surges Ahead of Musk, Then Musk Reclaims Richest Title

In a dramatic turn of events on March 15, 2024, Larry Ellison briefly overtook Elon Musk as the world’s richest person, following a remarkable surge in the stock price of Oracle Corp.. This shift occurred just after the stock market opened, as Oracle’s shares jumped more than 36%, fueled by a strong earnings report that showcased substantial new contracts worth over $300 billion.

Ellison’s momentary reign at the top was short-lived. By the end of the trading day, Musk regained his position, with a net worth of $384.2 billion compared to Ellison’s $383.2 billion. The fluctuations in their fortunes illustrate the volatility of the stock market, especially in the tech sector.

Oracle’s Earnings Propel Ellison

The spike in Oracle’s stock followed the company’s announcement of robust earnings, driven by significant orders amidst the growing competition in artificial intelligence. During a conference call, Ellison emphasized that Oracle’s future revenue is expected to increase dramatically, projecting a rise in cloud infrastructure revenue to $18 billion in the fiscal year, and $144 billion over the next four years.

Ellison, who owns about 40% of Oracle, saw his net worth soar by approximately $100 billion in a matter of minutes following the positive market response. The company’s contracts with major players such as OpenAI, Meta, Nvidia, and Musk’s own xAI highlight Oracle’s pivotal role in the AI landscape. Ellison stated, “AI Changes Everything,” reflecting the transformative impact AI technologies are expected to have across various industries.

Musk Faces Challenges with Tesla

While Ellison celebrated his brief ascent, Musk continued to grapple with challenges at Tesla. The electric vehicle manufacturer has seen its stock decline by 14% so far this year, contrasting sharply with Oracle’s gains. Despite Musk’s efforts to pivot focus towards Tesla’s advancements in robotics and artificial intelligence, the company has struggled to regain momentum after a significant drop in sales.

Recent reports indicated that Tesla’s sales in the European Union fell by 40% earlier this summer, marking the seventh consecutive month of decline. Factors contributing to this downturn include backlash against Musk’s controversial political stances, which have alienated some potential customers. Additionally, Tesla is losing market share in the U.S., with some buyers reportedly avoiding Tesla showrooms due to Musk’s public support for certain political figures.

As of the market close on March 15, Oracle’s stock stood at $328.33, while Tesla’s shares increased slightly to $347.79. The contrasting trajectories of the two tech giants underscore the unpredictable nature of the tech industry and the wealth of its leading figures.

The ongoing rivalry between Musk and Ellison not only captivates the financial world but also highlights the broader implications of technology and investment in shaping economic landscapes. As both billionaires navigate their respective challenges and opportunities, the battle for the title of the world’s richest person remains a closely watched spectacle.