LVMH becomes first European company to hit $500-bn market value

LVMH, the world's largest luxury goods group, is closing in on Tesla Inc for ninth spot on the list of the world’s biggest companies by market capitalisation, only days after entering the top 10, said a report on Monday.

Shares in the luxury-goods benemoth have risen 6.9% this month, lifting its market value to about $500 billion, making it the first European company to hit the landmark, helped by stronger-than-expected first-quarter sales. Tesla has fallen 23% in the same time, cutting its capitalisation to $505 billion as price cuts take a toll on the electric carmaker’s profitability, reported Bloomberg.

LVMH’s rising value has swelled the wealth of Bernard Arnault to almost $212 billion, making him the richest person on earth, while Elon Musk is a distant second with wealth of $165 billion.

Earlier this year, 73-year old Arnault reshuffled top management at his luxury goods empire, tightening his family's grip with the appointment of his daughter Delphine to lead Christian Dior, and naming a new boss for Louis Vuitton.