PARIS – Billionaire Bernard Arnault, the world’s richest person, is solidifying his lead over second-ranked Mr Elon Musk. The luxury tycoon is selling more expensive goods, while the Tesla founder cuts prices on electric vehicles.

The 74-year-old Frenchman behind LVMH saw his fortune soar by US$12 billion on Thursday to almost US$210 billion (S$278.3 billion), a record high and his second-biggest single-day rise ever, according to the Bloomberg Billionaires Index. Mr Musk is worth US$180 billion after gaining US$3.8 billion.

The surge in Mr Arnault’s net worth came after investors cheered quarterly sales published by the producer of Louis Vuitton handbags, Moet & Chandon champagne and Christian Dior gowns.

LVMH shares rose 5.7 per cent to a record in Paris trading on Thursday, propelling it into the world’s top 10 companies with a market capitalisation of €444 billion (S$650.8 billion).

The relatively discreet Mr Arnault – whose family owns 48 per cent of LVMH’s share capital – joined Mr Musk and Amazon.com’s Mr Jeff Bezos earlier this month as the only individuals whose wealth has exceeded US$200 billion. He is the first person outside the United States to accomplish the feat.

LVMH’s performance was driven by Chinese shoppers splashing out on pricey goods after emerging from pandemic lockdowns. The company registered growth in all regions even with a “bit of a slowdown” in the US.

While Mr Arnault gets richer by selling designer clothes and jewellery, Mr Musk’s wealth has dropped since peaking at US$340 billion. Tesla, the electric-car maker he co-founded, is cutting prices across its US line-up in a bid to boost demand.

Twitter, the other company he runs along with SpaceX, could become cash flow positive as soon as this quarter, Mr Musk said this week in a rambling interview. The social media platform was saddled with billions of dollars of debt following his acquisition. BLOOMBERG