"Consumption downgrading" has become a mantra for ordinary people, but the luxury industry is recognized as an industry that is less affected by economic fluctuations.
Text |Wang Chang
According to CCTV News, citing Forbes News on January 26, the personal assets of Bernard Arnault, chairman and CEO of the French luxury goods giant LVMH, surpassed Elon Musk to become the richest man in the world. 
But on January 29, Eastern time, Tesla's stock price rose 419% at 190$93, and the latest total market capitalization is 6069$5.1 billion, which also helped Musk regain his position as the richest man in the world. 
Forbes real-time rich listIt is worth mentioning that the last time a similar situation happened, it took Musk two months - in December 2022, Arnault replaced Musk as the richest man in the world. In February 2023, Musk returned to the seat of the world's richest man with a total net worth of $187.1 billion. 
In June 2023, Musk and Arnault had lunch together in ParisAnd this time, from January 26 to January 29, Musk regained the throne of the world's richest man in just 4 days, how did he do it? Emerging technology PK old luxury goodsA few days ago, how did LV's Arnault family become the richest people in the world? It's because of the latest financial report! On January 26, LVMH released its 2023 financial report, showing that its net profit and revenue both hit record highs. LVMH shares soared on news of strong sales. Although the global economy is still in the stage of recovery under pressure, inflation and a tense geopolitical environment linger on the economy, and "consumption downgrade" has become a mantra for ordinary people, the luxury industry is recognized as an industry that is less affected by economic volatility. Arnault, 74, is LVMH's chief executive. He spent nearly 40 years building his luxury empire, carefully acquiring and nurturing iconic brands such as Louis Vuitton, TAG Heuer and Dom Pérignon Champagne. He also strategically brought his five adult children under his umbrella to create a family business. 
In April last year, LVMH became the first European company to have a market capitalization of more than $500 billion. This proves that luxury goods have an enduring appeal even in times of economic turmoil. Arnault's first assortment to the top of the list came in December 2022, when the tech sector's struggles contrasted sharply with the resilience of luxury brands in the face of inflation. On January 25, the day before LVMH released its 2023 earnings report, Tesla's latest financial report showed that the company's performance fell short of expectations, with a net profit of 108 for the yearUS$8.2 billion, down 23% year-on-year. Total revenue for the year reached 967US$7.3 billion, an increase of 19% year-on-year, compared with the growth rate of more than 50% in the previous two years, revenue growth in 2023 will slow down significantly. It is worth mentioning that Tesla's Q4 profit in 2023 is **40%, the first annual profit decline since 2017 for the whole year, and warned that car sales will decline in 2024, but did not specify the specific figures as previously in the fourth quarter results. Weak results and vague guidance disappointed the market. As a result, Tesla's stock price fell by more than 12% on January 25, and Musk's net worth lost more than $18 billion. It's no surprise that LV's Arnault family became the richest people in the world on January 26. 
How does Musk reclaim the throne? After waiting for three days, Musk mainly concentrated his efforts on January 29. On January 29, Tesla Inc. filed its annual Form 10-K with the SEC. The company expects capital expenditures in 2024 to exceed $10 billion, while the "next-generation platform," which is theoretically expected to be released next year, is already in production plans. In addition, Tesla will invest $500 million in the Buffalo, New York Gigafactory, to build a DOJO supercomputer. It was on these positive capital expenditures that Tesla closed up 419%, helping Musk regain the position of the world's richest man. Still on January 29,Musk said that his brain-computer interface company Neuralink performed the first human transplant of a brain-computer interface device on January 28, and the transplant recipient is now recovering well. Musk said that the first users of this product will be people who have lost the function of their limbs. 
This news is actually even more exciting than Tesla! Founded in 2016, Neuralink focuses on the research and development of implantable brain-computer interface devices. Implanted in the brain, the device can read brain activity signals, and it is hoped that it can be used for memory loss, cervical spinal cord injury and other neurological diseases, helping paralyzed people regain the ability to communicate with the outside world and even walk again. Neuralink first announced in 2019 that it was testing its device on monkeys. The following year, they showed a pig implanted in their device and made some design changes to the device. In 2021, Neuralink caused a huge sensation by releasing a video video game showing a monkey implanted in its device playing a video game telepathically. 
In May last year, Neuralink received approval from the U.S. Food and Drug Administration to initiate human clinical trials of brain implant devices. In September of the same year, Neuralink began recruiting volunteers for clinical trials. 
For Musk's brain-computer interface, industry insiders have always had a high evaluation. The financing situation in 2023 shows thatNeuralink is valued at $5 billion. As for the future of brain-computer interfaces, analysts generally believe that the future is bright, but it will take time to land. Typically, first-in-human trials (the type of study that Neuralink has just started) enroll 5 to 10 people and take about six months, according to some analysts. If all goes well, Neuralink can begin what is known as a "feasibility study". Last year, Neuralink said it expected 11 surgeries by 2024. If the first human transplant of a brain-computer interface device is finally successful on January 28, then Musk will have to stay in the position of the world's richest man for a long time, after all, this is more meaningful for human progress than selling luxury bags, isn't it?
References: CCTV News, Reference News, Nanfeng Window, 21st Century Business Herald, Yangcheng School.