
<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Shares of Tesla started reversing a recent rally Tuesday morning after Chief Executive Elon Musk suggested a massive deal with bankrupt car-rental company Hertz, which helped push Tesla into a rarefied group of firms worth more than $1 trillion, has yet to be finalized—seemingly contradicting an announcement last week that helped the company add more than $300 billion in market value.&nbsp;</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Tesla stock fell as much as 4% Tuesday morning after closing at a record high $1,208 on Monday, putting the company on track to lose $42 billion in market value and ending a week of straight gains.</p>



<p>The dip started after Musk, 50,&nbsp;<a href="https://twitter.com/elonmusk/status/1455351085170823169?s=20" target="_blank" rel="noreferrer noopener">tweeted</a>&nbsp;overnight he&#8217;d &#8220;like to emphasize&#8230; no contract has been signed&#8221; with Hertz yet, responding to a user touting—and praising Musk for—Tesla&#8217;s recent stock gains.</p>



<p>&#8220;Hertz deal has zero effect on our economics,&#8221; Musk added, without mentioning shares of Tesla have skyrocketed nearly 33% since Hertz&nbsp;<a href="https://newsroom.hertz.com/2021-10-25-Hertz-Invests-in-Largest-Electric-Vehicle-Rental-Fleet-and-Partners-with-Seven-Time-Super-Bowl-Champion-Tom-Brady-to-Headline-New-Campaign" target="_blank" rel="noreferrer noopener">announced</a>&nbsp;an order of 100,000 vehicles by the end of 2022 as part of a bid to electrify its fleet of rental cars, representing the carmaker&#8217;s largest order ever, according to Wedbush analyst Dan Ives.</p>



<p>Tesla and Hertz did not immediately respond to&nbsp;<em>Forbes</em>&#8216; request for comment.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Tesla&#8217;s Hertz-fueled surge has helped make it more valuable than social media giant Facebook and even propelled the S&amp;P 500 and Nasdaq, which both count the carmaker among its largest constituents, to new highs over the&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2021/11/01/dow-sp-post-new-record-highs-as-investors-await-federal-reserves-stimulus-decision/">past week</a>. In the United States, only Apple, Microsoft, Amazon and Google-parent Alphabet are worth more than Tesla, which still commands nearly $1.2 trillion in market value. Hertz&#8217;s order would represent about 20% of the nearly 500,000 vehicles Tesla sold last year.&nbsp;</p>



<h2 class="wp-block-heading" id="h-surprising-fact">SURPRISING FACT</h2>



<p>Despite falling Tuesday, Tesla shares are still up about 60% this year, compared to 25% for the S&amp;P.&nbsp;</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>$315 billion. That&#8217;s how much&nbsp;<a href="https://www.forbes.com/sites/elizahaverstock/2021/10/26/elon-musk-nearing-300-billion-fortune-is-the-richest-person-in-history/">Musk</a>&nbsp;was worth after Tesla&#8217;s record high on Monday, making him not only the richest person in the world—but also the richest person&nbsp;<em>Forbes</em>&nbsp;has ever tracked. Before Tuesday, Musk&#8217;s fortune had grown by about $85 billion since the Hertz deal was announced.&nbsp;</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/elizahaverstock/2021/10/26/elon-musk-nearing-300-billion-fortune-is-the-richest-person-in-history/">Elon Musk, Nearing $300 Billion Fortune, Is The Richest Person In History</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2021/10/26/dow-and-sp-hit-new-record-highs-as-tesla-adds-to-its-massive-rally/">Dow And S&amp;P Hit New Record Highs As Tesla Adds To Its Massive Rally</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2021/10/25/tesla-amasses-1-trillion-in-market-value-after-hertz-places-biggest-electric-vehicle-order-ever/">Tesla Eclipses $1 Trillion In Market Value After Hertz Places Biggest Electric Vehicle Order Ever</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2021/11/01/heres-why-ferrari-not-tesla-is-morgan-stanleys-favorite-electric-vehicle-stock/">Here&#8217;s Why Ferrari—Not Tesla—Is Morgan Stanley&#8217;s Favorite Electric Vehicle Stock</a><em> (Forbes)</em></p>



<p><strong><em> By Jonathan Ponciano, FORBES AFRICA </em></strong></p>


Elon Musk visits construction site of the Tesla Giga Factory

Tesla Stock Loses $40 Billion In Market Value After Elon Musk Says Hertz Contract Hasn’t Been Signed


<p>Anti-billionaire sentiment and calls to close the wealth inequality gap led Democratic lawmakers earlier this week to float an ambitious&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2021/10/27/new-billionaire-wealth-tax-targeting-assets-of-700-richest-americans-unveiled-heres-how-the-democratic-plan-would-work/?sh=c3b03f3f5c23">plan</a>&nbsp;to tax the unrealized capital gains of the richest people in America. Based on&nbsp;<em>Forbes</em>’ calculations, it could have cost just the 20 richest with mainly public stock fortunes $345 billion if it had been implemented in 2020.</p>



<p>Not surprisingly, a number of billionaires including&nbsp;<a href="https://www.forbes.com/profile/elon-musk/">Elon Musk</a>&nbsp;and&nbsp;<a href="https://www.forbes.com/profile/donald-trump/">Donald Trump</a>&nbsp;resoundingly&nbsp;<a href="https://twitter.com/elonmusk/status/1452792781726961668" target="_blank" rel="noreferrer noopener">denounced</a>&nbsp;the bill. Trump even&nbsp;<a href="https://www.businessinsider.com/donald-trump-rips-billionaire-tax-muses-about-leaving-country-2021-10" target="_blank" rel="noreferrer noopener">threatened</a>&nbsp;to move out of the U.S. Others—including Democratic Senator Joe Manchin, who&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2021/10/27/billionaire-tax-dead-on-arrival-after-manchin-blasts-proposal-mere-hours-after-its-release/">contributed</a>&nbsp;to its downfall on Wednesday—criticized it as unfair,&nbsp;<a href="https://www.forbes.com/sites/stevenrosenthal/2021/10/25/wydens-billionaire-income-tax-is-ambitious-but-problematic/?sh=4adeb0dd42ef">unrealistic</a>&nbsp;or difficult to enforce.</p>



<hr class="wp-block-separator"/>



<h4 class="wp-block-heading" id="h-the-tax-that-got-away"><strong>THE TAX THAT GOT AWAY</strong></h4>



<h4 class="wp-block-heading" id="h-the-short-lived-proposed-billionaire-tax-from-sen-ron-wyden-would-have-taxed-unrealized-capital-gains-and-brought-in-a-lot-more-money-than-the-newly-proposed-surtax-for-the-20-richest-u-s-billionaires-with-stock-based-fortunes">The short-lived proposed billionaire tax from Sen. Ron Wyden would have taxed unrealized capital gains and brought in a lot more money than the newly proposed surtax for the 20 richest U.S. billionaires with stock-based fortunes.</h4>



<hr class="wp-block-separator"/>



<p>It was pretty much dead on arrival. A day later, Democrats came out with a&nbsp;<a href="https://www.vanhollen.senate.gov/news/press-releases/van-hollen-beyer-applaud-inclusion-of-millionaires-surtax-in-build-back-better-framework" target="_blank" rel="noreferrer noopener">new</a>&nbsp;recommendation as part of President Joe Biden’s “Build Back Better” plan. This one would only levy a surtax on incomes—rather than the unrealized gains—of the ultra-rich. So much for a billionaire tax, this new plan will barely change their tax bill.</p>



<p>The new tax&nbsp;<a href="https://www.forbes.com/sites/howardgleckman/2021/10/28/how-the-democrats-new-millionaire-surtax-would-work/?sh=4bf114372877">plan</a>&nbsp;would apply a 5% surtax to adjusted gross income—including wages, capital gains, dividends and business income—above $10 million and an 8% surtax on income above $25 million. For billionaires, that means the capital gains tax rate would rise to 31.8% starting in 2022, up from 23.8%—if it passes.</p>



<p>On Wednesday, when news of the first billionaire tax plan came out,&nbsp;<em>Forbes</em>&nbsp;estimated what the 20 richest U.S. billionaires with fortunes mostly in public holdings would have to pay had the new proposed tax on unrealized capital gains been in effect in 2020 and for the annual gain between July 24, 2020 and September 3, 2021 (the dates&nbsp;<em>Forbes&nbsp;</em>locked in stock prices for our annual&nbsp;<em>Forbes</em>&nbsp;400 rankings). The total was an astonishing $345 billion.</p>



<h4 class="wp-block-heading" id="h-for-more-on-the-estimated-impact-of-the-billionaire-income-tax-plan-read-this-story"><sub><strong>FOR MORE ON THE ESTIMATED IMPACT OF THE BILLIONAIRE INCOME TAX PLAN, READ THIS STORY:</strong></sub></h4>



<p><a href="https://www.forbes.com/sites/giacomotognini/2021/10/27/heres-how-many-billions-of-dollars-americas-20-richest-including-elon-musk-and-jeff-bezos-might-owe-under-proposed-billionaire-tax/" target="_blank" rel="noreferrer noopener">MORE FROM FORBES<strong>Here&#8217;s How Many Billions Of Dollars America&#8217;s 20 Richest-Including Elon Musk And Jeff Bezos-Might Owe Under Proposed Billionaire Tax</strong><small>By&nbsp;<strong>Giacomo Tognini</strong></small></a></p>



<p>We repeated the exercise on Thursday when the much more modest surtax plan came out and recalculated the hypothetical tax bill for those same billionaires, using public data on their salaries, dividends and stock sales. This same group would likely have to fork over an estimated $11.9 billion in federal taxes on their wages, dividends and capital gains from stock sales—$3 billion more than they would pay under current law, but $333 billion less than they might have had to cough up under the billionaire income tax plan.</p>



<p>One critic of this type of tax plan is David Gamage, a tax law professor at Indiana University who worked with Democratic Senator Ron Wyden on the billionaire tax, who points out that billionaires can largely escape it. “It also creates complicated transactions designed to avoid tax that harm the economy in very serious ways,” Gamage said on Monday, before the new plan was introduced.</p>



<hr class="wp-block-separator"/>



<h4 class="wp-block-heading" id="h-barely-a-drizzle"><strong>BARELY A DRIZZLE</strong></h4>



<h4 class="wp-block-heading" id="h-far-from-soaking-the-rich-the-proposed-surtax-an-8-increase-in-the-tax-on-adjusted-gross-income-over-25-million-would-bring-in-just-under-3-billion-more-from-these-20-billionaires-if-applied-in-the-year-through-september-3-2021">Far from soaking the rich, the proposed surtax—an 8% increase in the tax on adjusted gross income over $25 million—would bring in just under $3 billion more from these 20 billionaires if applied in the year through September 3, 2021.</h4>



<hr class="wp-block-separator"/>



<p>No one is making out better under the new plan than Elon Musk. The richest person in history doesn’t receive an annual salary from Tesla, the electric car juggernaut he first backed in 2004, and the company&nbsp;doesn’t pay any dividends to its shareholders. So Musk didn’t receive any income from owning stock in the firm in the year between the 2020 and 2021&nbsp;<em>Forbes&nbsp;</em>400 lists. Nor did he cash out a single share in Tesla. Based on publicly available data, Musk would’ve owed Uncle Sam virtually nothing under the current tax plan or under Biden’s new plan, versus roughly $29.8 billion under&nbsp;Sen. Wyden’s short-lived plan.</p>



<p>Another winner from the new tax plan is veteran investor&nbsp;<a href="https://www.forbes.com/profile/warren-buffett/">Warren Buffett</a>, who draws a $100,000 annual salary as chairman and CEO of Berkshire Hathaway. He also received an estimated $410,000 in pretax dividend income from a small stake in U.S. Bancorp. He would’ve paid $24.1 billion with the billionaire tax,&nbsp;<em>Forbes</em>&nbsp;estimates, but only owes about $176,000 on his income under the proposed surtax, up from $140,000 under current rates.</p>



<p>Not every billionaire holds their stock forever, though, and those who tend to sell shares could face much bigger tax bills under the new plan. Had the proposal been in effect over the year ended September 3, the biggest taxpayer would have been&nbsp;<a href="https://www.forbes.com/profile/jeff-bezos/?sh=537acbaf1b23">Jeff Bezos</a>, who sold $12.8 billion worth of Amazon stock between the 2020 and 2021&nbsp;<em>Forbes</em>&nbsp;400 lists. Forbes estimates that he would have paid $4.1 billion in taxes under the new plan, $1 billion more than his current tax bill. (<em>Forbes</em>&nbsp;did not assume that Bezos or any others implemented measures like harvesting losses to lower their tax bill under the current or proposed surtax scenarios.)&nbsp;<a href="https://www.forbes.com/profile/mark-zuckerberg/?sh=35eb2a353e06">Mark Zuckerberg</a>, who sold nearly $3.8 billion worth of Facebook shares over that period, would likely have seen his tax bill go up $300 million to an estimated $1.2 billion. If the proposed surtax goes into effect, Zuckerberg could choose to stop selling his shares and borrow against them instead.</p>



<p>So the question of how to make sure the wealthiest Americans pay their fair share of taxes remains unsolved—and gets more difficult each year as the rich get that much richer. The wealthiest 400 Americans were&nbsp;<a href="https://www.forbes.com/forbes-400/">worth</a>&nbsp;a collective $4.5 trillion in September 2021, 40% more than they were just a year prior. That means they now hold 3% of the nation’s total household&nbsp;<a href="https://www.federalreserve.gov/releases/z1/" target="_blank" rel="noreferrer noopener">wealth</a>&nbsp;of $142 trillion. That widening wealth gap is unlikely to change without more significant tax reform, according to Gamage: &#8220;The vast majority of the real income of billionaires is currently escaping the income tax.”</p>



<p><em>Kerry Dolan, Matt Durot and Chase Peterson-Withorn contributed reporting.</em></p>



<h4 class="wp-block-heading" id="h-methodology"><strong>METHODOLOGY</strong></h4>



<hr class="wp-block-separator"/>



<p><em>Forbes looked at the 20 richest Americans with fortunes largely tied up in public stocks, calculating their annual salary, dividends and stock sales between July 24, 2020 and September 3, 2021. Bill Gates&#8217; calculation includes only his five largest disclosed publicly traded holdings: Microsoft, Canadian National Railway, Republic Services, Deere &amp; Company and Ecolab. Larry Ellison&#8217;s calculation includes his Oracle and Tesla shares. Leonard Blavatnik&#8217;s calculation includes only his five largest disclosed publicly traded holdings: Warner Music Group, LyondellBasell, DigitalOcean, Rusal and Square. Stephen Schwarzman&#8217;s calculation includes only his shares in Blackstone.</em></p>



<p><a href="https://www.forbes.com/sites/giacomotognini/"></a><strong><em>By Giacomo Tognini, FORBES STAFF </em></strong></p>


These Billionaires Might Have Just Dodged A $333 Billion Tax Bullet Thanks To Revised Tax Proposal


<p>As FORBES AFRICA celebrates a landmark 10th year, we look back on our stellar collection of cover stars and features and some of the most &#8220;quotable quotes&#8221; from the last ten years. </p>



<div class="wp-block-image"><figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-Dec_Jan-RGB-793x1024.jpg" alt="" class="wp-image-52876" width="298" height="385" srcset="https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-Dec_Jan-RGB-793x1024.jpg 793w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-Dec_Jan-RGB-232x300.jpg 232w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-Dec_Jan-RGB-768x991.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-Dec_Jan-RGB-1190x1536.jpg 1190w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-Dec_Jan-RGB.jpg 1258w" sizes="(max-width: 298px) 100vw, 298px" /></figure></div>



<blockquote class="wp-block-quote is-style-large is-layout-flow wp-block-quote-is-layout-flow"><p>I often say I can sleep on a mud floor as well as a feathered bed and be very comfortable. It has made me someone who can do without things in life because of what we went through.-Ngozi Okonjo-Iweala, December 2020 /January 2021</p></blockquote>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p>“IF WE CONTINUE DOING THE RIGHT THINGS IN AFRICA WE CAN CREATE A VERY EXCITING AND COMPETITIVE GLOBAL MARKET HERE.”– Patrice Motsepe, October 2011 (launch issue)</p></blockquote>



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2021/10/Screenshot-2021-10-28-at-17.31.24.png" alt="" class="wp-image-53194" width="439" height="349" srcset="https://cms.forbesafrica.com/wp-content/uploads/2021/10/Screenshot-2021-10-28-at-17.31.24.png 686w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/Screenshot-2021-10-28-at-17.31.24-300x239.png 300w" sizes="(max-width: 439px) 100vw, 439px" /></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2021/10/1-782x1024.jpg" alt="" class="wp-image-52782" width="318" height="416" srcset="https://cms.forbesafrica.com/wp-content/uploads/2021/10/1-782x1024.jpg 782w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/1-229x300.jpg 229w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/1-768x1006.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/1-1173x1536.jpg 1173w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/1.jpg 1240w" sizes="(max-width: 318px) 100vw, 318px" /></figure></div>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p>THERE IS NO BULLSHIT WITH WOMEN. WE DON’T WASTE TIME OUT OF POLITENESS.– Wendy Appelbaum, August 2012</p></blockquote>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p>You have to sit down and look at your business model and say ‘can it be interrupted’? –<strong> Jannie Mouton, July 2017</strong></p></blockquote>



<blockquote class="wp-block-quote is-style-large is-layout-flow wp-block-quote-is-layout-flow"><p>LIFE IS ABOUT TRIPPING AND FALLING AND LEARNING FROM MISTAKES, PULLING YOUR STRENGTHS AND MOVING ON.<strong>– Gbenga Oyebode, July 2018</strong></p></blockquote>



<blockquote class="wp-block-quote is-style-large is-layout-flow wp-block-quote-is-layout-flow"><p>It’s not only all about how much money you would have made and what you would have got. It’s about having a little bit of fun.” –<strong> Sol Kerzner, October 2014</strong></p></blockquote>



<div class="wp-block-image"><figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2018-MARCH-RGB-793x1024.jpg" alt="" class="wp-image-52852" width="414" height="535" srcset="https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2018-MARCH-RGB-793x1024.jpg 793w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2018-MARCH-RGB-232x300.jpg 232w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2018-MARCH-RGB-768x992.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2018-MARCH-RGB-1189x1536.jpg 1189w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2018-MARCH-RGB.jpg 1258w" sizes="(max-width: 414px) 100vw, 414px" /></figure></div>



<div class="wp-block-image"><figure class="alignleft size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-MAR-RGB-793x1024.jpg" alt="" class="wp-image-52878" width="336" height="434" srcset="https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-MAR-RGB-793x1024.jpg 793w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-MAR-RGB-232x300.jpg 232w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-MAR-RGB-768x991.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-MAR-RGB-1190x1536.jpg 1190w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/FA-2020-MAR-RGB.jpg 1258w" sizes="(max-width: 336px) 100vw, 336px" /></figure></div>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p>“If you fall flat on your face, beat yourself up and do it again until you succeed&#8230;” – Richard Branson, March 2018</p></blockquote>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"><p>“USING YOUR INFLUENCE TO CREATE IMPACT AND BETTER THE LIVES OF OTHERS — THAT IS WHAT BEING A POWERFUL WOMAN MEANS TO ME.” – Graça Machel, March 2020</p></blockquote>



<div class="wp-block-image"><figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2021/10/Screenshot-2021-10-28-at-17.31.36.png" alt="" class="wp-image-53193" width="339" height="384" srcset="https://cms.forbesafrica.com/wp-content/uploads/2021/10/Screenshot-2021-10-28-at-17.31.36.png 454w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/Screenshot-2021-10-28-at-17.31.36-265x300.png 265w" sizes="(max-width: 339px) 100vw, 339px" /></figure></div>


quotes

FORBES AFRICA 10TH ANNIVERSARY: FROM PAST EDITIONS- Who Said What


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>The stock market reached new record highs again on Monday thanks to a positive third-quarter earnings season so far, with investors largely optimistic about upcoming results from Big Tech companies.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The Dow Jones Industrial Average rose nearly 0.2% on Monday, while the S&amp;P 500 gained 0.5% and the tech-heavy Nasdaq Composite jumped 0.9%.</p>



<p>Both the Dow and S&amp;P 500 closed at new record highs as the stock market’s winning streak continued on the back of positive third-quarter earnings.</p>



<p>Of the 117 companies in the S&amp;P 500 that have reported earnings so far, some 84% have posted results that were above expectations, according to data from Refinitiv.</p>



<p>While earnings season has been upbeat so far, investors are looking ahead to earnings from major technology companies this week, including Facebook, Alphabet, Microsoft, Amazon and Apple.</p>



<p>Shares of Facebook, which reports after the market close on Monday, fell earlier in the day before rising over 1% in afternoon trading; The company has been under pressure recently following the release of the ‘<a href="https://www.forbes.com/sites/alisondurkee/2021/10/25/here-are-the-biggest-facebook-papers-charges-zuckerberg-caves-to-communist-government-and-lets-celebrities-break-the-rules-more/">Facebook Papers</a>’ whistleblower documents.</p>



<p>Tesla stock, meanwhile, surged 12% to a new all-time high on Monday—bringing the company’s market value to more than $1 trillion—after Hertz&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2021/10/25/tesla-amasses-1-trillion-in-market-value-after-hertz-places-biggest-electric-vehicle-order-ever/?sh=6366c038156e">announced</a>&nbsp;it placed the company’s biggest order ever and bought 100,000 Tesla cars.&nbsp;</p>



<h2 class="wp-block-heading" id="h-big-number-26-billion">BIG NUMBER: $26 BILLION</h2>



<p>That’s how much Elon Musk’s net worth&nbsp;<a href="https://www.forbes.com/sites/elizahaverstock/2021/10/25/elon-musk-is-nearly-14-billion-richer-after-hertz-order-pushes-tesla-stock-to-record-levels/?sh=5d56b6ef7248">jumped</a>&nbsp;on Monday as Tesla shares skyrocketed. With a net worth of $255.8 billion, according to&nbsp;<em>Forbes</em>’ estimates, the Tesla cofounder and CEO is the richest person on the planet—worth more than any billionaire&nbsp;<em>Forbes</em>&nbsp;has ever tracked.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND:</h2>



<p>The major averages have all registered strong gains so far this month, with the Dow and S&amp;P both up more than 5%, while the Nasdaq has gained more than 4%.</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE:</h2>



<p>Despite supply-chain concerns and labor shortages, the “rising tide of earnings is lifting all the boats and adding fuel to the bull market fire,” says Anu Gaggar, global investment strategist at Commonwealth Financial Network.</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR:</h2>



<p>“There could be more gains to come in the final two months of the year,” predicts Ryan Detrick, chief market strategist for LPL Financial. “Seasonal tailwinds, improving market internals, and clear signs of a peak in the Delta variant all provide potential fuel for equities heading into year-end.”</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING:</h2>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2021/10/25/tesla-amasses-1-trillion-in-market-value-after-hertz-places-biggest-electric-vehicle-order-ever/?sh=6366c038156e">Tesla Hits $1 Trillion In Market Value After Hertz Places Biggest Electric Vehicle Order Ever</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/sergeiklebnikov/2021/10/25/pinterest-shares-plummet-12-after-paypal-ends-rumors-of-a-45-billion-deal/">Pinterest Shares Plummet 12% After PayPal Ends Rumors Of A $45 Billion Deal</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/sergeiklebnikov/2021/10/22/heres-why-facebook-twitter-and-google-shares-are-sinking-even-as-the-market-sits-near-record-highs/">Here’s Why Facebook, Twitter And Google Shares Are Sinking Even As The Market Sits Near Record Highs</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/alisondurkee/2021/10/25/here-are-the-biggest-facebook-papers-charges-zuckerberg-caves-to-communist-government-and-lets-celebrities-break-the-rules-more/">Here Are The Biggest ‘Facebook Papers’ Charges: Zuckerberg Caves To Communist Government And Lets Celebrities Break The Rules, More</a> (<em>Forbes</em>)</p>



<p><strong><em>By Sergei Klebnikov, Forbes Staff</em></strong></p>


Elon Musk Betting On Tesla IPO To Fund Electric Car Maker

Stocks Close At Record Highs After Tesla Hits $1 Trillion In Market Value


<p>Tesla’s robust deliveries of electric Model Ys and 3s helped the Elon Musk-led carmaker post record net income of $1.6 billion in the third quarter, despite component sourcing headaches that have slowed the entire global auto industry, as it prepares to open massive new plants in Germany and Texas.&nbsp;</p>



<p>The&nbsp;<a href="https://tesla-cdn.thron.com/static/TWPKBV_TSLA_Q3_2021_Quarterly_Update_SI1AKE.pdf?xseo=&amp;response-content-disposition=inline%3Bfilename%3D%22TSLA-Q3-2021-Quarterly-Update.pdf%22" target="_blank" rel="noreferrer noopener">company said</a>&nbsp;earnings per share for the three months that ended on September 30 rose more than fourfold from a year ago to $1.44 on a GAAP basis or to $2.09, excluding certain items. Consensus analyst expectations were for $1.67. Quarterly revenue was $13.8 billion, up 57% from a year ago and in line with analysts’ expectations of as much as $13.9 billion. Sales regulatory credits to other automakers, a long-time source of free money, dropped 30% to $279 million.</p>



<p>“We were also able to achieve an annualized production run rate of over 1 million cars toward the end of the quarter. That increase in production rate has primarily been driven by further ramping of the Model Y at our Shanghai factory,” Tesla CFO Zack Kirkhorn said during an earnings call. Still, “due to part shortages and logistics variability we have not been able to run our factories at full capacity.”</p>



<p>The company is in a transition phase this year as it prepares to dramatically boost global production. Tesla is awaiting approval in Germany to begin building vehicles at its new Giga Berlin factory and also will soon begin production at its Gigafactory Texas near Austin. The addition of both facilities should boost its global production footprint by more than 50% in 2022.</p>



<p>“We believe the current supply chain issues have taken roughly 40,000 cars off the annual numbers for Tesla,” Dan Ives, an equity analyst with Wedbush Securities, said in a research note. “Despite this dynamic Musk &amp; Co. should near the 900,000 mark for 2021 with a 1.3 million to 1.4 million unit bogey for 2022.”&nbsp;</p>



<p>Tesla previously reported&nbsp;<a href="https://ir.tesla.com/press-release/tesla-q3-2021-vehicle-production-deliveries" target="_blank" rel="noreferrer noopener">delivering 241,300 vehicles</a>&nbsp;worldwide in the quarter, the most ever, and built 237,823 cars at its plants in California and China. So far this year the company, which is shifting its headquarters to Austin, Texas, has delivered 627,427 vehicles to global customers.</p>



<p>The company’s Fremont, California, plant, which built more than 430,000 EVs in the last four quarters, currently can produce as many as 600,000 units. Meanwhile, its new Shanghai, China, plant, a major source of vehicle exports, accounted for much of the volume growth during the quarter. Tesla estimates it can produce more than 450,000 Model 3s and Ys annually.&nbsp;</p>



<p>“China is the star of the show after headwinds earlier this year,” said Ives, who has an Outperform rating and $1,000 target price on Tesla shares.</p>



<p>Still, during the quarter Tesla said it “saw a continuation of global supply chain, transportation and other manufacturing challenges. We continue to run our production lines as close to full capacity as conditions allow.”</p>



<p>The company expects final approval to begin German production of the Model Y before the end of the year, though high-volume output will takes months to achieve, Kirkhorn said. The Austin plant will also initially build Model Ys and, eventually, the polarizing Cybertruck electric pickup.</p>



<p><strong>A Musk-less Results Call</strong></p>



<p>Notably, Musk didn’t participate in the earnings call with analysts (as he said would likely be the case earlier this year). Earlier in the week he lashed out on Twitter at Duke University professor of engineering and computer science Missy Cummings, who’s been tapped to serve as a senior adviser to the National Highway Traffic Safety Administration, the federal agency that regulates automotive rules. Cummings has pointed out shortcomings in Tesla’s Autopilot system and taken issues with its so-called Full Self-Driving feature.</p>



<p>“Objectively, her track record is extremely biased against Tesla,”&nbsp;<a href="https://twitter.com/elonmusk/status/1450653942938054656?s=20" target="_blank" rel="noreferrer noopener">Musk tweeted</a>&nbsp;to his 61 million followers. Cummings responded that she’s happy to sit down and with him anytime.</p>



<p>During the earnings call, however, Tesla executives said they supported NHTSA’s&nbsp;<a href="https://www.forbes.com/sites/alanohnsman/2021/08/16/us-launches-broad-investigation-into-tesla-autopilot-over-numerous-crashes/?sh=a72aeda58b59">increased scrutiny of its partially automated</a>&nbsp;driving system, while avoiding any comment on Musk’s tweets.</p>



<p>“We expect and embrace the scrutiny of these products and know that the truth about their performance and the innovations our products have will ultimately be all that matters,” said Lars Moravy, Tesla’s vice president of engineering.</p>



<p>Kirkhorn, in a very non-Musk response, said NHTSA’s review “is a great thing” for Tesla.</p>



<p>The stock was little changed in Nasdaq trading on Wednesday, rising 0.2% to close at $865.80.&nbsp;<em>Forbes</em>&nbsp;estimates Musk’s net worth, as Tesla’s biggest shareholder, is&nbsp;<a href="https://www.forbes.com/profile/elon-musk/?sh=32792d197999">$219.9 billion</a>.</p>



<p>&nbsp;<strong><em>By Alan Ohnsman, Forbes Staff</em></strong></p>


GERMANY-AUTOMOBILE-TESLA-MUSK

Tesla Notches Record $1.6 Billion Quarterly Net As It Readies Global Production Push

Screenshot 2021-10-19 at 07.19.31

The Next Billion-Dollar Startups 2021


<p>Tesla, born in Silicon Valley in the early 2000s, is moving its headquarters to Texas where the electric-car maker’s billionaire CEO Elon Musk already lives, though it will continue building vehicles in the San Francisco Bay Area.&nbsp;</p>



<p>Musk made the announcement Thursday evening at the company’s annual shareholders meeting, held at Tesla’s nearly complete Texas Gigafactory near Austin. He didn’t specify the precise timing of when the current headquarters in Palo Alto would close, though the move is not entirely unexpected.&nbsp;</p>



<p>“To be clear though, we will be continuing to expand our activities in California,” Musk said. “This is not a matter of Tesla leaving California. Our intention is to actually increase output from Fremont and from a gig in Nevada by 50%.”</p>



<p>Though California remains Tesla’s biggest market in the U.S. and largest source of vehicle production, Musk has soured on the state in recent years, most notably after health officials in Alameda County, where the company&#8217;s Fremont factory is located, set restrictions to protect worker safety and health during the early days of the Covid-19 pandemic in 2020. Musk, whose views have grown more libertarian over the years, moved to Austin in 2020.</p>



<p>California Governor Gavin Newsom, a&nbsp;<a href="https://www.latimes.com/politics/la-pol-ca-gavin-newsom-tax-returns-20170509-htmlstory.html" target="_blank" rel="noreferrer noopener">Tesla owner</a>, had&nbsp;<a href="https://www.cnbc.com/2020/05/19/gavin-newsom-not-worried-about-elon-musk-moving-tesla-from-california.html" target="_blank" rel="noreferrer noopener">told CNBC</a>&nbsp;in May 2020 interview that he wasn’t “concerned about Elon leaving anytime soon” after Musk initially threatened to do so.</p>



<p>Yet Musk has increasingly bristled at strict rules in California while warming to the appeal of cheaper, less-regulated Texas. In September, after the state passed a&nbsp;<a href="https://www.forbes.com/sites/alisondurkee/2021/09/02/biden-vows-action-against-texas-abortion-ban-with-whole-of-government-effort/?sh=2426ab856acf">strict abortion law</a>, and following its tighter rules on voting and loosening of gun regulations, Texas Gov. Greg Abbott said the billionaire entrepreneur “<a href="https://www.forbes.com/sites/alanohnsman/2021/09/02/elon-musk-likes-the-social-policies-in-texas-according-to-governor-amid-abortion-furor/?sh=2ec74fea6649">likes the social policies</a>” there.</p>



<p>“California is the birthplace of innovation, the 5th largest economy in the world and home to the biggest ideas and companies on the planet—that success is not despite our progressive policies, but because of them,” said Erin Mellon, a spokesperson for Newsom.</p>



<p>“We stand up for our workers, public health, and a woman’s right to choose. These are California’s fundamental values, and we’ll continue creating more jobs than any other state, outpacing the nation’s economic recovery, and maintaining the lowest COVID-19 case rates in the country,” she said.</p>



<p>Tesla’s headquarters move is the first by an automaker in the state since Toyota similarly announced plans to move its North American headquarters from suburban Los Angeles to suburban Dallas.&nbsp;Electric vehicle startups Lucid Motors, Fisker Inc. and Rivian currently are based in California.</p>



<div class="wp-block-image"><figure class="aligncenter"><img decoding="async" src="https://thumbor.forbes.com/thumbor/960x0/https%3A%2F%2Fspecials-images.forbesimg.com%2Fimageserve%2F615f80929b080124edd0d297%2FTesla-leaving-california-for-texas%2F0x0.jpg%3FcropX1%3D78%26cropX2%3D1521%26cropY1%3D0%26cropY2%3D752" alt="Tesla-leaving-california-for-texas"/><figcaption>Tesla&#8217;s Texas Gigafactory is to begin vehicle production by the end of 2021.&nbsp;<small>TESLA</small></figcaption></figure></div>



<p>“We believe this was a smart strategic move for Tesla as the company is aggressively building out its Austin footprint and over time with Cybertruck and more Model 3/Y production Musk is now doubling down on its Texas footprint with capacity ramping into 2022,” Daniel Ives, an equity analyst for Wedbush Securities, said in a research note. “While Fremont will continue to be a key for Tesla around Model 3 production, we believe this was the first step towards Tesla making Austin its domestic and global foundational location over the coming decade with its recent frustration with California officials likely accelerating this move.”</p>



<p>Among the issues Musk cited were the company’s need for additional space, expensive home prices in the Bay Area and long commutes for workers.&nbsp;</p>



<p>“We’re here in Austin and our factory is like five minutes from the airport, 15 minutes from downtown,” Musk said. “We&#8217;re going to create an ecological paradise here on the Colorado River. It’s gonna be great.”&nbsp;&nbsp;</p>



<p>Tesla shares rose 1.4% in Nasdaq trading on Thursday to $793.61.</p>



<p><strong><em>By Alan Ohnsman, Forbes Staff</em></strong></p>


gettyimages-490597722-594×594

Musk Is Moving Tesla’s Headquarters From California To Texas


<p><strong>In recent years, he has dominated Africa’s rich lists as the continent’s youngest billionaire. Mohammed Dewji, the shrewd entrepreneur and CEO of MeTL Group in Tanzania, has previously been on two FORBES AFRICA covers – in 2013 and 2015. In this new decade, he is eyeing a much bigger chunk of African business.</strong></p>



<p class="has-drop-cap">JUST BACK IN DUBAI AFTER A WHIRLWIND trip dropping off his 18-year-old daughter at the School of Foreign Service at his alma mater, Georgetown University in Washington DC, the 46-year-old Tanzanian businessman, known in the hallowed corridors of the continent’s elite as “Africa’s youngest billionaire”, is more emotional than jet-lagged.</p>



<p>“I had to let go of her, you know, but I’m going to visit DC more often,” says Mohammed Dewji.</p>



<p>He could be speaking for himself too. In FORBES AFRICA’s July 2013 cover, he had said he puts in 100 hours a week growing MeTL into a pan-African conglomerate.</p>



<p>Today, he admits to slowing down “a little bit” – after his headline-grabbing kidnapping incident in 2018 that gave him a new lease on life and made him veer towards philanthropy and impact investing a lot more than before, he says.</p>



<p>But this has in no way decelerated his ambitions to conquer more markets and more milestones.</p>



<p>The astute, hard-nosed businessman running Tanzania’s MeTL Group, operating in areas as diverse as food, agriculture, textiles, trading, energy, financial services, real estate, logistics, and distribution, has a vision for his company that covers every commerce and commodity on the African map.</p>



<p>“My problem is my mind, it runs like a train. I’m trying to slow it down. But I’m not working 100 hours a week anymore; I work 80 hours a week,” he laughs. “I’m still passionate about work, I just cannot have an idle mind.”</p>



<p>The entire MeTL Group, he says, is on course for a targeted revenue this year of about $2 billion.<br>The group had its genesis in the early 1970s as a modest trading house; his father Gulam Dewji, in a few years, turned it into a flourishing import-export business.</p>



<p>Today, the younger Dewji is talking about buying an island with a landing strip “very soon” and venturing into the hospitality business. A half-hour interview with Dewji and he has touched every business there is: his renewed investments in tea, carbonated drinks, macadamia, cashews, textiles&#8230; the list is endless.</p>



<p>But there is the reason for him to feel bullish. With the country’s new President, Samia Suluhu Hassan, taking over early this year following the death of President John Magufuli, Tanzania is waking up to a new vision and positive outlook, hoping to join the continent’s economic giants Nigeria, South Africa, Kenya, and Ghana.</p>



<p>“The new president is so business-friendly, investment-friendly, and FDI-friendly, she is doing good for Tanzania,” says Dewji.</p>



<p>“I have promised her that in the next five years, I’ll employ 100,000. Tanzania is one of the fastest-growing countries in Africa. I am going to continue investing more into the country and of course, in the region.”</p>



<div class="wp-block-image"><figure class="alignleft size-full is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2021/10/Screenshot-2021-10-05-at-14.40.35.png" alt="" class="wp-image-52721" width="236" height="134" srcset="https://cms.forbesafrica.com/wp-content/uploads/2021/10/Screenshot-2021-10-05-at-14.40.35.png 474w, https://cms.forbesafrica.com/wp-content/uploads/2021/10/Screenshot-2021-10-05-at-14.40.35-300x171.png 300w" sizes="(max-width: 236px) 100vw, 236px" /></figure></div>



<p>Dewji has his ear to the ground and is well-attuned to the purchasing power of consumers in his target markets in East and Central Africa.</p>



<p>“When I got out of university in Georgetown in 1998-1999, the per capita income in Tanzania was $300. So I was like, ‘okay, how do I become a rich man?’ Today, the per capita income is over $1,000. From the time you wake up in the morning, to the time you sleep, I need to dig deep into your pockets to at least take 70% of your purchasing power, right?” he explains simply.</p>



<p>“So you wake up in the morning, there is tea, sugar, maize flour, carbonated drinks, water; there’s a bicycle, there’s a motorcycle, there’s garments etc etc, So I have been able to just fight to enter. And I’ve been competing with Unilever and Procter &amp; Gamble, and Coca-Cola. I believe that in the next maybe four or five years, my carbonated drinks business, which I am expanding, will be at least over a billion dollars in terms of valuation in East and Central Africa.”</p>



<p>Dewji has big plans in Rwanda.</p>



<p>“I told President Paul Kagame that I was going to invest $50 million. And I’m going to put in an edible oil refinery and a soap plant, I’m going to put in wheat milling, I’m going to put in maize milling, I am going to put petroleum, we’re putting carbonated soft drinks. And they have been amazing. They are punching above their weight.<br>You are welcomed like a king in Rwanda,” says the man, also known to his family and friends as ‘Mo’.</p>



<p>Agriculture is a mainstay business, and in 2022, Dewji says he will be the single largest sisal producer in the world. In addition, he is converting his tea business to organic tea.</p>



<p>“I’m going to invest another $50 million into planting a couple of thousand hectares of new hybrid tea that I can export, and also make more tea locally. I am looking at macadamia in a big way; we’ve invested in Mozambique in the maize milling business, in the cashew processing business. And<br>in textiles, you know that I am one of the largest. If you were to visit my factory, it’s 3,800 people spinning, weaving, processing, dyeing, printing&#8230; For now, I want to also go into denim. We need to create more jobs,” he reels off breathlessly.</p>



<p>Dewji was in Iraq too recently and found a big gap in FMCG – “businesses that I know already”.</p>



<p>In the last few years, he has also found the time to part-own a football club, Simba SC, and is channeling more funds into it.</p>



<p>“And now, we [are among] the top 15 clubs in Africa. We have had back-to-back leagues, and I have invested $20 million. It’s just like having a plane or a yacht; you bleed money. But I just love the club and am so emotional about it.”</p>



<p>In 2015, Dewji also created his eponymous foundation educating underprivileged children right up to the university level in Tanzania, he says. As Tanzania’s only billionaire, he also signed the Giving Pledge in 2016, promising to donate at least half his fortune to philanthropic causes.</p>



<p>“Bill Gates convinced me and I signed the Giving Pledge and it has been amazing. And then, of course, the worst<br>the part was my kidnapping in 2018.”</p>



<p>Kidnapped at gunpoint in Dar es Salaam, the Tanzanian capital, in October 2018, outside his gym<br>at 5 AM, Dewji was released after nine days.</p>



<p>“I went through a near-death experience; they basically stripped me and blindfolded me, and I was in a room with two people, without moving for all those days,” he recalls.</p>



<p>It gave him a new life-altering perspective.</p>



<p>“I think by the age of 50, I want my kids to get a little older, and I just want to step down and do philanthropy, because it gives me a lot of satisfaction. When we run businesses, we invest and we want the maximum per dollar, right? So I look at philanthropy the same way; that you spend that dollar or the $100 or $100 million that you want to put to have maximum impact, and I’m going to focus on that!&#8221;</p>


Final Press Release

Get, Set, Mo! $1.6 Billion And Counting


<p>TOPLINE: Lawyers representing embattled Theranos founder Elizabeth Holmes have submitted a list of dozens of witnesses who could be called to testify in her defense at her trial beginning Wednesday, adding numerous high-profile board members, former employees and even the journalist who sparked her downfall to an already <a href="https://www.forbes.com/sites/jemimamcevoy/2021/08/30/elizabeth-holmes-trial-starts-this-week-heres-what-to-know-about-her-charges-defense-strategy-and-more/?sh=135962cf5fa7">star-studded roster</a> of potential witnesses outlined by the prosecution. </p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Holmes’ team submitted over 50 names, including 12 that were redacted, in a filing late Tuesday, emphasizing that the list may be supplemented depending on what happens at the trial.&nbsp;</p>



<p>Among those who could be called to the witness stand is Holmes herself, who is maintaining the option to plead her own innocence to the jury.</p>



<p>Also on the list of potential witnesses are multiple people tied to her defunct company, including former employees involved in making Theranos’ products and powerful figures who served on Theranos’ board, such as former CDC Director William Foege, former Senate Majority Leader William Frist and former Wells Fargo CEO Richard Kovacevich.&nbsp;</p>



<p>Riley Bechtel, a construction billionaire who pumped&nbsp;<a href="https://www.wsj.com/articles/theranos-cost-business-and-government-leaders-more-than-600-million-1525392082#:~:text=Riley%20Bechtel%2C%20the%20former%20chairman,Corp.%2C%20invested%20%246.2%20million." target="_blank" rel="noreferrer noopener">over $6 million</a>&nbsp;into Theranos, is also on the preliminary list, alongside Sue Desmond-Hellman, the former CEO of the Bill and Melinda Gates Foundation, though her connection to Holmes is not immediately clear.&nbsp;</p>



<p>Holmes’ defense team has tapped numerous members of the federal health bodies that reviewed Theranos’ technology to possibly testify at trial as well, such as former Food and Drug Administration head Alberto Gutierrez.</p>



<p>Some of the more surprising names on the list are three of the prosecutors leading the case against Holmes and the former&nbsp;<em>Wall Street Journal</em>&nbsp;reporter who penned the 2015 articles that first raised doubts about Theranos’ technology.&nbsp;</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE&nbsp;</h2>



<p>“[The] strategy seems clear,”&nbsp;<a href="https://twitter.com/JohnCarreyrou/status/1435341074772336641?s=20" target="_blank" rel="noreferrer noopener">said</a>&nbsp;the ex-WSJ journalist, John Carreyrou, who has also produced a podcast and written a book about Holmes’ case, of the defense team’s selections. “They’re going to argue to the jury that this was a witch hunt.”&nbsp;</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT&nbsp;</h2>



<p>The potential witnesses highlighted by the defense compound those already named by the prosecution, whom Holmes’ legal team may also choose to call on. The prosecution’s list, which was over 200 people long, included other Theranos-linked power players like former Secretary of State Henry Kissinger, one of the company’s board members, and media mogul Rupert Murdoch.</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR&nbsp;</h2>



<p>Opening arguments begin Wednesday in Holmes’ trial, which is expected to last between three and four months total.&nbsp;</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND&nbsp;</h2>



<p>Holmes, now 37 years old, faces a total of 12 charges—two counts of conspiracy to commit wire fraud and 10 counts of wire fraud—for allegedly engaging in a multimillion-dollar scheme to deceive investors, doctors and patients from 2010 to 2016 alongside Theranos’ former COO Ramesh “Sunny” Balwani, with whom she was romantically involved. If found guilty, they could be sentenced to up to 20 years in prison and hit with a $250,000 fine, in addition to restitution, for each count. Holmes and Balwani have both pleaded not guilty and are standing trial separately (Balwani’s trial is set to begin January 2022).</p>



<h2 class="wp-block-heading" id="h-surprising-fact">SURPRISING FACT&nbsp;</h2>



<p>Holmes skyrocketed to fame nearly a decade ago and was hailed as a visionary for Theranos, a company she founded at age 19 while she was still a student at Stanford University. Setting the lofty goal of revolutionizing healthcare, Holmes said she had the technology to create blood tests that would be able to run hundreds of diagnostics on diseases ranging from cancer to diabetes using just a small drop of patients’ blood. She attracted a litany of high-profile investors who pumped&nbsp;<a href="https://www.marketwatch.com/story/the-investors-duped-by-the-theranos-fraud-never-asked-for-one-important-thing-2018-03-19" target="_blank" rel="noreferrer noopener">more than $700 million</a>&nbsp;into the company and also struck partnerships with Walgreens, Cleveland Clinic, Capital BlueCross and more from 2013 to 2015. A media darling, she appeared on the covers of most major magazines and was&nbsp;<a href="https://www.forbes.com/sites/forbespr/2015/05/27/forbes-announces-inaugural-list-of-americas-50-richest-self-made-women/?sh=4e3c511e24c1">declared</a>&nbsp;America’s youngest self-made female billionaire by&nbsp;<em>Forbes</em>&nbsp;in 2015 after Theranos was valued at $9 billion. The momentum was abruptly broken later that year when the&nbsp;<em>Wall Street Journal</em>&nbsp;published a series of&nbsp;<a href="https://www.wsj.com/articles/theranos-has-struggled-with-blood-tests-1444881901" target="_blank" rel="noreferrer noopener">investigations</a>&nbsp;calling into question the effectiveness of Theranos’ blood testing machines, which it discovered were giving patients incorrect diagnoses. This catalyzed a fall from grace that led to the dissolution of the business in September 2018 and Holmes’ estimated net worth falling to $0, according to&nbsp;<a href="https://www.forbes.com/sites/matthewherper/2016/06/01/from-4-5-billion-to-nothing-forbes-revises-estimated-net-worth-of-theranos-founder-elizabeth-holmes/?sh=1661b7c93633"><em>Forbes</em></a>.&nbsp;</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING&nbsp;</h2>



<p><a href="https://www.forbes.com/sites/jemimamcevoy/2021/08/30/elizabeth-holmes-trial-starts-this-week-heres-what-to-know-about-her-charges-defense-strategy-and-more/?sh=135962cf5fa7">“Elizabeth Holmes’ Trial Starts This Week—Here’s What To Know About Her Charges, Defense Strategy And More”</a>&nbsp;(Forbes)</p>


Elizabeth Holmes Theranos Trial Begins With Jury Selection

Board Members, Billionaires And A Journalist: Here’s Who Elizabeth Holmes’ Lawyers Could Call To Testify


<p><em><strong>Purchased for $4 billion, Disney’s superhero factory is now worth more than $50 billion.</strong></em></p>



<p>For Disney CEO Bob Chapek, this weekend’s debut of<em>&nbsp;Shang-Chi and the Legend of the Ten Rings</em>&nbsp;is a roll of the dice. It’s the first Marvel film to open on the normally anemic Labor Day weekend and its central character, a kung fu master in the mold of ‘70s martial arts icon Bruce Lee, is little-known. Its exclusive theatrical release, which Chapek himself called an “interesting experiment,” comes as Covid cases continue to spike.&nbsp;</p>



<p>The Chinese government has yet to approve the film for distribution in the world’s largest movie market, raising the stakes for Chapek<em>.&nbsp;</em>But Disney has built up quite a bit of wiggle room with its control of the 80-year-old comic-book publisher that writer Stan Lee and illustrator Jack Kirby put on the map: Purchased in 2009 for just $4 billion,&nbsp;<em>Forbes&nbsp;</em>estimates the company is now worth almost $53 billion, or about 16% of Disney’s market value.</p>



<p>Not a bad return on an investment that few said would ever pay off.&nbsp;</p>



<p>“People didn’t fully understand and appreciate the franchise potential of the genre like we did,” says Tom Staggs, Disney&#8217;s former chief financial officer who helped lead the acquisition. “We were able to buy it because the industry didn’t totally get it either.”</p>



<p>Keeping that value may be one of the biggest challenges facing Chapek, the former theme park and consumer products executive who took over as CEO last year. He has already rankled Hollywood by taking on Scarlet Johansson,<a href="https://www.forbes.com/sites/dawnchmielewski/2021/07/30/how-much-scarlett-johansson-can-win-if-she-triumphs-in-disney-lawsuit/">&nbsp;one of Marvel’s biggest stars&nbsp;</a>, over compensation tied to the simultaneous theatrical and streaming release of&nbsp;<em>Black Widow,</em>&nbsp;including the contentious decision to disclose her&nbsp;$20 million salary for the role. That strategy also reportedly&nbsp;<a href="https://www.wsj.com/articles/how-disney-and-scarlett-johansson-reached-the-point-of-no-return-11630688765" target="_blank" rel="noreferrer noopener">rankled Marvel Chief Creative Officer Kevin Feige</a>, who didn’t want to see the film downgraded to home streaming.</p>



<p><em>Shang-Chi&nbsp;</em>presented a different set of&nbsp;<a href="https://www.nytimes.com/2021/09/02/opinion/asian-americans-superheroes-shang-chi.html" target="_blank" rel="noreferrer noopener">challenges for the filmmakers</a>&nbsp;— knocking down problematic Asian stereotypes in the comic that may explain why&nbsp;<a href="https://www.cnbc.com/2021/09/02/shang-chi-doesnt-have-a-release-date-in-china-why-thats-a-big-deal.html" target="_blank" rel="noreferrer noopener">China has yet to set a release date.&nbsp;</a>The performance of&nbsp;<em>Shang-Chi&nbsp;</em>will influence how Disney distributes the next Marvel installment,&nbsp;<em>Eternals,&nbsp;</em>due out Nov. 5.&nbsp; It may well determine whether the company can adhere to its carefully choreographed schedule of Marvel stories, intended first to debut in theaters, then expanded on TV.</p>



<p>It was that kind of calculated control that turne a lean, independent studio operating above a Mercedes Benz dealership in Beverly Hills into the beating heart of the world’s biggest entertainment company. Twenty-four Marvel titles collectively grossed $21.9 billion in Disney’s hands, making it bigger than Bond, more potent than Potter and massive compared to <em>The Fast And The Furious.</em> </p>



<div class="wp-block-image"><figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2021/09/Screenshot-2021-09-08-at-10.29.47-1024x540.png" alt="" class="wp-image-52446" width="668" height="351" srcset="https://cms.forbesafrica.com/wp-content/uploads/2021/09/Screenshot-2021-09-08-at-10.29.47-1024x540.png 1024w, https://cms.forbesafrica.com/wp-content/uploads/2021/09/Screenshot-2021-09-08-at-10.29.47-300x158.png 300w, https://cms.forbesafrica.com/wp-content/uploads/2021/09/Screenshot-2021-09-08-at-10.29.47-768x405.png 768w, https://cms.forbesafrica.com/wp-content/uploads/2021/09/Screenshot-2021-09-08-at-10.29.47.png 1366w" sizes="(max-width: 668px) 100vw, 668px" /></figure></div>



<p>It’s also far better than&nbsp;<em>Star Wars</em>&nbsp;which Disney bought with its $4 billion purchase of Lucasfilm in 2012, delivering box office sales of just $6 billion on the five films it produced. Its $7.4 billion acquisition of Pixar in 2006 also pales, with the 21 Disney-owned films generating ticket sales of $14.4 billion. Marvel, says Comscore media analyst Paul Dergarabedian, is easily the most successful film franchise in history.&nbsp;</p>



<p>Here’s a look at Marvel by the numbers.</p>



<p><strong>FILM — Nearly $6 billion</strong></p>



<p><strong>No. 1 Marvel Film: Avengers: Endgame, $2.8 billion</strong></p>



<p>Marvel superheroes have been a key piece of Walt Disney box office dominance in recent&nbsp; years, giving the studio the two biggest movies of 2018 —&nbsp;<em>Avengers: Infinity War</em>&nbsp;and&nbsp;<em>Black Panther</em>&nbsp;— and one of the highest-grossing films of all time —&nbsp;<em>Avengers: Endgame</em>&nbsp;— a year later. Since 2018, Disney has released seven Marvel films that have collectively brought in more than $9.4 billion, according to data from Comscore. That kind of dominance boosts the value of all its other films by driving up the price the company can get from cable TV networks like Starz or streaming services like Netflix to show them. Media analyst Richard Greenfield estimated the value of Disney’s 2012 Netflix deal, which provided the streamer with access to newly released films starting in 2016, would generate $450 million in revenue in its first year.&nbsp;</p>



<p><strong>STREAMING — $40 billion+</strong></p>



<p><strong>Most-Watched Marvel Show: Loki&nbsp;</strong></p>



<p><em>WandaVision. The Falcon and the Winter Soldier</em>.&nbsp;<em>Loki.&nbsp;</em>Marvel shows have helped attract 12.4 million new subscribers to the Disney+ streaming service from April through June, bringing the total to 116 million as of July. The&nbsp;<em>WandaVision</em>&nbsp;debut was a Top 10 hit and which only got bigger with each one of its nine episodes — Nielsen estimates it was viewed by 30.5 million people.&nbsp;<em>The Falcon and the Winter Soldier</em>&nbsp;captured an audience of 28.3 million, Nielsen reported, while&nbsp;<em>Loki, which debuted three months later,&nbsp;</em>drew an even larger 35 million viewers, according to the measurement service. No surprise, ten more Marvel series are coming, including&nbsp;<em>Ms. Marvel,</em>&nbsp;the first Muslim-American superhero;&nbsp;<em>Hawkeye,</em>&nbsp;with actor Jeremy Renner reprising his&nbsp;<em>Avengers</em>’ expert marksman character; and&nbsp;<em>She-Hulk,</em>&nbsp;played by Emmy Award-winning Tatiana Maslany.&nbsp; “The addition of the Marvel content &#8230; is a tremendous catalyst of growth for us,” Chapek told investors in May, noting it built on the success of the Star Wars-inspired original series,&nbsp;<em>The Mandalorian.&nbsp;</em>Marvel’s<em>&nbsp;Black Widow</em>&nbsp;exceeded $125 million in sales on Disney+, where it premiered on the same day as the film’s theatrical release, sparking a high-profile battle with star Scarlett Johansson over profits that could well set a precedent for how talent is compensated in the streaming era.</p>



<p><strong>CONSUMER PRODUCTS — About $3 billion&nbsp;</strong></p>



<p><strong>No. 1 Selling Marvel Product: Super Heroes Avengers Iron Man Hall of Armor, $45 price</strong></p>



<p>Under Disney, sales of all things Marvel&nbsp; — Spider-Man swim trunks, Hulk bedding, Winter Soldier and Captain America action figures — account for nearly $10 billion in licensing revenue from merchandise sales since 2010, according to&nbsp;<em>Forbes</em>&nbsp;calculations. Marvel Chairman Ike Perlmutter initially viewed toy sales as the profit driver for the company, with the films playing the role of marketing. Today it is making heaps of cash on both. Disney does not disclose what percentage of revenue is attributable to Marvel, though two people with direct knowledge say it’s second only to Disney’s classic characters (Mickey, Minnie, Donald, Goofy) in revenue.&nbsp;&nbsp;</p>



<p><strong>THEME PARKS — TBD</strong></p>



<p><strong>First Marvel Attraction: Iron Man Experience, Hong Kong Disneyland</strong></p>



<p>Despite being in Disney hands for more than a decade, it’s still too early to estimate its value to the enterprise — but its six-acre Avengers Campus opened at Disneyland in June and is already drawing crowds who show up to interact with characters such as Iron Man, Thor, Captain Marvel or Black Panther. One attraction, the&nbsp; Spider-Man Web Slingers ride, sends guests on a 3D mission to combat an infestation of Spider-Bots at the Headquarters, not far from the 2017 remake of the&nbsp;<em>Twilight Zone</em>-inspired Tower of Terror plunge that is now branded the Guardians of the Galaxy &#8211; Mission: Breakout dark ride. “They’ve done it right,” said Dennis Speigel, chief executive of International Theme Park Services consultancy. “There have been huge crowds and waits to get in.” Marvel is making its way around the world. An Ant-Man and The Wasp attraction opened in 2019 in Hong Kong Disneyland. Coming soon: Epcot Center’s Guardians of the Galaxy: Cosmic Rewind indoor roller coaster and an Avengers Campus concept at Disneyland Paris.&nbsp;</p>



<p>METHODOLOGY Disney doesn’t disclose Marvel’s value and analysts who cover the company haven’t done so independently, so to estimate its current value <em>Forbes</em> consulted with former company insiders, industry observers and Wall Street analysts. We used operating income for the film and consumer products units and estimated Marvel’s contribution at 22% — its share of the company’s total box office for the past decade. A 15x multiple was applied. Disney+ was included at the $200 billion valuation assigned by MoffettNathanson’s Michael Nathanson.</p>



<p><strong><em>By Dawn Chmielewski, Forbes Staff</em></strong></p>


Gold House Special Screening Of Marvel Studios’ “Shang-Chi And The Legend Of The Ten Rings”

From Avengers To Shang-Chi, What Marvel Studios Is Really Worth To Walt Disney


<p><strong>It’s been a rollercoaster year among the very wealthiest, with Musk, Jeff Bezos and LVMH’s Bernard Arnault all vying for the number one spot.</strong></p>



<p>Athree-way race for the title of wealthiest person in the world intensified Thursday as&nbsp;<a href="https://www.forbes.com/profile/elon-musk/">Elon Musk</a>, worth an estimated $177.4 billion at the day’s end, overtook French luxury magnate&nbsp;<a href="https://www.forbes.com/profile/bernard-arnault/">Bernard Arnault</a>&nbsp;for second place. Arnault, who held pole position to start the week, got nearly $21 billion poorer over the past two days as LVMH shares tumbled 12.6%. That led to Amazon founder&nbsp;<a href="https://www.forbes.com/profile/jeff-bezos/">Jeff Bezos</a>&nbsp;reclaiming the top spot with a fortune estimated at $185.5 billion.</p>



<p>It’s been a rollercoaster year atop the billionaire ranks. Since January, the three have periodically jockeyed for the lead on&nbsp;<em>Forbes</em>’&nbsp;<a href="https://www.forbes.com/real-time-billionaires/">real-time tracker</a>&nbsp;of the world’s richest people, with each coming out on top—and losing the title—multiple times over the past eight months.</p>



<p>The constant shuffling is unusual. Over the first three decades after&nbsp;<em>Forbes</em>&nbsp;began tracking billionaires’ net worths in 1987, only six people held the title of world’s richest person. In the early years, two Japanese real estate moguls—Yoshiaki Tsutsumi and Taikichiro Mori—topped the list, until&nbsp;<a href="https://www.forbes.com/profile/bill-gates/">Bill Gates</a>&nbsp;came along in the late 1990s. From 1997 to 2017, Gates dominated the list, save for a single year when&nbsp;<a href="https://www.forbes.com/profile/warren-buffett/">Warren Buffett</a>&nbsp;took the top spot (2008) and a three-year stint when Mexico’s&nbsp;<a href="https://www.forbes.com/profile/carlos-slim-helu/">Carlos Slim Helu</a>&nbsp;wrested the title (2010 through 2013). (Spanish retailer&nbsp;<a href="https://www.forbes.com/profile/amancio-ortega/">Amancio Ortega</a>&nbsp;also grabbed the top spot for a few hours in 2015, and a couple days in 2016.)&nbsp;</p>



<hr class="wp-block-separator"/>



<h3 class="wp-block-heading" id="h-race-to-the-top">RACE TO THE TOP</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="750" src="https://cms.forbesafrica.com/wp-content/uploads/2021/08/Screenshot-2021-08-20-at-13.39.52-1024x750.png" alt="" class="wp-image-52223" srcset="https://cms.forbesafrica.com/wp-content/uploads/2021/08/Screenshot-2021-08-20-at-13.39.52-1024x750.png 1024w, https://cms.forbesafrica.com/wp-content/uploads/2021/08/Screenshot-2021-08-20-at-13.39.52-300x220.png 300w, https://cms.forbesafrica.com/wp-content/uploads/2021/08/Screenshot-2021-08-20-at-13.39.52-768x563.png 768w, https://cms.forbesafrica.com/wp-content/uploads/2021/08/Screenshot-2021-08-20-at-13.39.52-1536x1125.png 1536w, https://cms.forbesafrica.com/wp-content/uploads/2021/08/Screenshot-2021-08-20-at-13.39.52.png 1540w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Forbes.com</figcaption></figure>



<p>In recent years, the longtime Microsoft chief, has found himself firmly outside the top three thanks to gifts of stock to his Bill and Melinda Gates Foundation, transfers of at least $5 billion worth of shares in public companies to his ex-wife&nbsp;<a href="https://www.forbes.com/profile/melinda-french-gates/">Melinda French Gates</a>—and the meteoric rise of Bezos, Musk and Arnault.</p>



<p>Since early 2017—when Gates topped the World’s Billionaires list with an $86 billion net worth—Bezos has added more than $110 billion to his fortune on the back of skyrocketing Amazon stock, Arnault has ridden LVMH shares’ 225% climb to more than quadruple his net worth and Musk has had the steepest climb in history, gaining more than $150 billion in four years as Tesla has become the most valuable carmaker on the planet.</p>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-jeff-bezos"><strong>Jeff Bezos</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-185-2-billion">Net worth: $185.2 billion</h3>



<h3 class="wp-block-heading" id="h-gain-in-past-12-months-6-6-billion">Gain in past 12 months: $6.6 billion</h3>



<h3 class="wp-block-heading" id="h-weeks-this-year-ended-at-no-1-26">Weeks this year ended at No. 1: 26</h3>



<p>Bezos, the longtime Amazon CEO and now executive chairman, has been the world’s richest for most of 2021. Bezos began the year in first place and, after briefly dropping to No. 2, he&nbsp;<a href="https://www.forbes.com/sites/lisettevoytko/2021/01/16/jeff-bezos-once-again-the-worlds-richest-person-after-rollercoaster-week/">regained the No.1 spot</a>&nbsp;for about four months from mid-January until May. Bezos&nbsp;<a href="https://www.forbes.com/sites/giacomotognini/2021/06/10/after-two-weeks-at-no-2-jeff-bezos-is-once-again-the-richest-person-in-the-world/">returned to the top spot</a>&nbsp;on June 10, and maintained the lead for 50 days before losing footing when Amazon announced disappointing quarterly earnings in late July, which wiped $13.9 billion from his net worth in a single day. Even as Amazon’s stock continues to falter, an even shakier performance by the stock of Arnault’s LVMH helped Bezos to&nbsp;<a href="https://www.forbes.com/sites/kenrickcai/2021/08/18/jeff-bezos-again-richest-person-in-world/">once again become the richest person</a>&nbsp;on Wednesday.</p>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-elon-musk"><strong>Elon Musk</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-177-1-billion">Net worth: $177.1 billion</h3>



<h3 class="wp-block-heading" id="h-gain-in-past-12-months-110-9-billion">Gain in past 12 months: $110.9 billion</h3>



<h3 class="wp-block-heading" id="h-weeks-this-year-ended-at-no-1-1">Weeks this year ended at No. 1: 1</h3>



<p>Musk’s fortune has grown by more than $100 billion in one year, thanks to an extraordinary rise in the stock price of electric vehicle maker Tesla. After a brief drop at the start of the Covid-19 pandemic, shares rocketed in subsequent months. On January 8, 2021—with Tesla shares up more than 1,000% from the pandemic-period low—Musk&nbsp;<a href="https://www.forbes.com/sites/sergeiklebnikov/2021/01/08/elon-musk-is-now-the-richest-person-in-the-world-officially-surpassing-jeff-bezos/">first became</a>&nbsp;the world’s richest person, overtaking Bezos. For about a week, the two&nbsp;<a href="https://www.forbes.com/sites/sergeiklebnikov/2021/01/11/elon-musk-falls-to-second-richest-person-in-the-world-after-his-fortune-drops-nearly-14-billion-in-one-day/">traded places</a>&nbsp;on a&nbsp;<a href="https://www.forbes.com/sites/sergeiklebnikov/2021/01/12/elon-musk-is-back-at-no-1-richest-person-in-the-world-after-tesla-stock-rebounds/">near-daily</a>&nbsp;<a href="https://www.forbes.com/sites/sergeiklebnikov/2021/01/13/elon-musk-falls-to-worlds-second-richest-person/">basis</a>, but as Tesla stock began to fall, Bezos solidified his position once again. Musk, meanwhile, was overtaken by Arnault and dropped down to third place for months beginning in April.</p>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-bernard-arnault">Bernard<strong>&nbsp;Arnault</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-173-2-billion">Net worth: $173.2 billion</h3>



<h3 class="wp-block-heading" id="h-gain-in-past-12-months-61-9-billion">Gain in past 12 months: $61.9 billion</h3>



<h3 class="wp-block-heading" id="h-weeks-this-year-ended-at-no-1-6">Weeks this year ended at No. 1: 6</h3>



<p>Through <a href="https://www.forbes.com/sites/susanadams/2019/10/31/the-100-billion-man-how-bernard-arnault-stitched-together-the-worlds-third-biggest-fortune-with-louis-vuitton-dior-and-77-other-brandsand-why-hes-not-done-yet/">predatory instinct</a>, Arnault has built a luxury empire that is the largest company in Europe by market capitalization. His LVMH owns dozens of brands, including fashion mainstay Louis Vuitton, alcohol producer Hennessy and cosmetics retailer Sephora. Earlier this year, LVMH completed a $15.8 billion acquisition of jeweler Tiffany &amp; Co., victorious after a contentious saga that began with an unsolicited takeover bid. Arnault <a href="https://www.forbes.com/sites/giacomotognini/2021/05/21/french-luxury-tycoon-bernard-arnault-is-now-tied-with-jeff-bezos-for-richest-person-in-the-world/">first became the world’s richest person</a> in May and, after <a href="https://www.forbes.com/sites/daviddawkins/2021/05/24/bernard-arnault-becomes-worlds-richest-person-as-lvmh-stock-rises/">some days</a> of <a href="https://www.forbes.com/sites/giacomotognini/2021/05/27/bernard-arnault-becomes-the-richest-person-in-the-world-for-the-third-time-this-week/">jostling</a>, he managed to hold Bezos off for about two weeks. When shares in Amazon fell in late July, Arnault <a href="https://www.forbes.com/sites/hanktucker/2021/07/30/bernard-arnault-once-again-the-worlds-richest-person-after-jeff-bezos-loses-nearly-14-billion-in-one-day/">reclaimed the number one position</a> and held on for most of August, before threats of Chinese wealth redistribution tanked European luxury stocks and caused Arnault’s fortune to plunge by more than $20 billion this week.</p>



<p><strong><em>By Kenrick Cai, Forbes Staff</em></strong></p>


Elon Musk Visits Site Of New Tesla Gigafactory In Germany

Elon Musk Is Now The Second Richest Person In The World


<p><strong>How the singer became the richest female musician on the planet. Hint: it wasn&#8217;t performing.</strong></p>



<p>When Robyn Fenty, known to the world as Rihanna, launched Fenty Beauty in 2017, she sought to create a cosmetics company that made “women everywhere (feel)&nbsp;<em>included</em>.” A perhaps unintended consequence: The beauty line has helped her enter one of the world’s most&nbsp;<em>exclusive</em>&nbsp;ranks: Billionaire.</p>



<p>Rihanna is now worth $1.7 billion,&nbsp;<em>Forbes</em>&nbsp;estimates—making her the wealthiest female musician in the world and second only to Oprah Winfrey as the richest female entertainer. But it’s not her music that’s made her so wealthy. The bulk of her fortune (an estimated $1.4 billion) comes from the value of Fenty Beauty, of which&nbsp;<em>Forbes&nbsp;</em>can now confirm she owns 50%. Much of the rest lies in her stake<strong>&nbsp;</strong>in her lingerie company, Savage x Fenty, worth an estimated $270 million, and her earnings from her career as a chart-topping musician and actress.</p>



<p>While Barbados-born Rihanna isn’t the only celebrity to capitalize on her social media presence —she has 101 million followers on Instagram and 102.5 million on Twitter—to build a beauty brand, she is the most successful beauty entrepreneur to do so. Fenty Beauty, which is a 50-50 joint venture with French luxury goods conglomerate LVMH (run by Bernard Arnault, the world’s second richest person), launched in 2017 with the goal of inclusivity. Its products come in a diverse range of colors—foundation is offered in 50 shades, including harder-to-find darker shades for women of color—and are modeled in its advertising by an equally diverse group of people.&nbsp;</p>



<p>Available online and at Sephora stores, which are also owned by LVMH, the products were an instant success. By 2018, its first full calendar year, the line was bringing in more than $550 million in annual revenues, according to LVMH, beating out other celebrity-founded brands like Kylie Jenner’s Kylie Cosmetics, Kim Kardashian West’s KKW Beauty and Jessica Alba’s Honest Company.</p>



<p>“A lot of women felt there were no lines out there that catered to their skin tone. It was light, medium, medium dark, dark,” says Shannon Coyne, cofounder of consumer products consultancy Bluestock Advisors. “We all know that’s not reality. She was one of the first brands that came out and said ‘I want to speak to all of those different people.’”</p>



<p>While cosmetics sales slowed during the pandemic, beauty companies are worth as much as ever. Stocks of larger beauty conglomerates like Estee Lauder and L&#8217;Oreal have bounced back, reaching all-time highs and trading at impressive 7.5 (or more) times annual revenues. Meanwhile independent brands like Beautycounter and Charlotte Tilbury inked deals with investment firms earlier this year at billion-dollar valuations.</p>



<p>That is good news for Rihanna. Thanks to the impressive multiples at which beauty companies are trading, Fenty Beauty is worth a conservative $2.8 billion,&nbsp;<em>Forbes&nbsp;</em>estimates. And all signs point to the company continuing to grow. In its annual report for 2020, LVMH said Fenty Skin, which launched last year, was off to a “very promising start” and “generated unprecedented buzz,” and that Fenty Beauty &#8220;maintained its appeal as a premier make up brand.&#8221;</p>



<p>Fenty Beauty isn’t Rihanna’s only billion-dollar brand. In February her lingerie line&nbsp;<a href="https://www.forbes.com/sites/maddieberg/2021/02/10/rihannas-lingerie-line-savage-x-fenty-raises-115-million-on-same-day-lvmh-announces-its-closing-her-fashion-house/">Savage x Fenty raised $115 million in funding</a>&nbsp;at a $1 billion valuation. The company, which launched in 2018 as a joint venture with TechStyle Fashion Group, counts blue-chip investors like Jay-Z’s Marcy Venture Partners and private equity firm L. Catterton (<a href="https://www.forbes.com/sites/sergeiklebnikov/2020/05/12/why-a-private-equity-firm-backed-by-bernard-arnault-is-putting-400-million-into-norwegian-cruise-line/?sh=7fa14e343504">in which Bernard Arnault is an investor)</a>&nbsp;as shareholders. Rihanna maintains a 30% ownership stake,&nbsp;<em>Forbes&nbsp;</em>estimates. The latest round of funding will reportedly be used for customer acquisition and retail expansion.&nbsp;</p>



<p>Not that everything Rihanna touches turns to gold.&nbsp; In February, LVMH and Rihanna&nbsp;<a href="https://www.forbes.com/sites/maddieberg/2021/02/10/rihannas-lingerie-line-savage-x-fenty-raises-115-million-on-same-day-lvmh-announces-its-closing-her-fashion-house/?sh=4568e2373660">confirmed in a statement to&nbsp;<em>Forbes</em></a>&nbsp;that they had shut down their other venture, a high-end fashion and accessories house also called Fenty. Launched in 2019, Fenty sought to extend Rihanna’s brand of inclusivity and offer styles in a range of sizes. But like many luxury fashion brands, the high-priced line suffered during the pandemic, releasing its last collection in November 2020.</p>



<p>The only complaint some fans may have about her career as a fashion and beauty mogul? It keeps her busy. The singer, who used to release an album almost every year, hasn’t released a new album since 2016’s&nbsp;<em>Anti.&nbsp;</em></p>



<p>From a financial perspective, that may be just fine: “She is creating a brand outside of herself. It’s not just about Rihanna,” says consultant Coyne. “Even if you don&#8217;t like her music, she’s created a real style in the fashion and beauty space.”</p>



<p><strong><em>by&nbsp;Madeline Berg, Forbes Staff</em></strong></p>


Rihanna’s Savage X Fenty Show Vol. 2 presented by Amazon Prime Video – Show & BTS

Fenty’s Fortune: Rihanna Is Now Officially A Billionaire


<p>Jeff Bezos is no longer the richest person on the planet, and this time it’s not because he physically left earth in a Blue Origin rocket. Amazon stock cratered 7.6% Friday after the company reported second quarter earnings Thursday afternoon—shaving $13.9 billion off its founder’s fortune in one day and pushing Bezos behind French tycoon Bernard Arnault.</p>



<p>Shares of Arnault’s luxury goods conglomerate LVMH fell by 1.4% Friday, making Arnault $2.9 billion poorer as well, but he still finished the week with an estimated net worth of $192.9 billion, $500 million ahead of Bezos. The two&nbsp;<a href="https://www.forbes.com/sites/giacomotognini/2021/06/10/after-two-weeks-at-no-2-jeff-bezos-is-once-again-the-richest-person-in-the-world/?sh=44e6163557aa">played leapfrog</a>&nbsp;for the top spot in late May and early June, but Bezos had spent the last 50 days as the world’s richest person, notwithstanding his brief interstellar excursion on July 20.</p>



<p>After Arnault got more than <a href="https://www.forbes.com/sites/giacomotognini/2021/04/13/how-lvmh-chief-bernard-arnault-got-nearly-100-billion-richer-over-the-past-year/?sh=39ada77692f1">$100 billion richer</a> during the first year of the pandemic, LVMH’s rally has plateaued for most of the summer. Arnault owns a 47% stake in the company, which has a market capitalization of more than $400 billion. Its subsidiaries include Louis Vuitton, Moët &amp; Chandon, Christian Dior and Tiffany &amp; Co.</p>



<p>Despite the stock drop, Amazon was far from a failure in the second quarter. The business generated $113 billion in revenue—27% higher than the same period last year—and $7.8 billion in net profit. But stockholders were hoping the embarrassment of riches would be even larger, especially after first quarter revenue grew 44%. Amazon said Thursday that it predicts third quarter revenue to be between $106 billion and $112 billion, lower than the $119 billion analysts were expecting. Amazon’s chief financial officer, Brian Olsavsky, attributed the slowdown to people feeling more comfortable leaving home to shop and spend on other activities compared with last spring and summer during the heart of the pandemic.</p>



<p>Amazon’s decline also lowered the net worth of Bezos’ ex-wife MacKenzie Scott to an estimated $56 billion, a $4.6 billion drop on Friday, making her the 22nd-richest person in the world.</p>



<p>Aside from Bezos and Scott, most of the week’s biggest billionaire losers reside in China, where stocks continued to fall due to the country’s&nbsp;<a href="https://www.forbes.com/sites/ywang/2021/07/27/chinas-internet-tycoons-suffer-136-billion-wealth-drop-as-regulatory-crackdown-triggers-market-sell-off/?sh=337731be373c">ongoing tech crackdown</a>. This month, Chinese authorities forced app stores to&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2021/07/04/china-bans-didi-from-app-stores-just-days-after-massive-us-ipo/?sh=5ad30e731202">remove ride-hailing giant Didi</a>&nbsp;within days of its U.S. IPO,&nbsp;<a href="https://www.forbes.com/sites/ywang/2021/07/25/chinas-tutoring-crackdown-sends-fortunes-of-education-billionaires-into-nosedive/?sh=5bf4861b256f">crippled online tutoring companies</a>&nbsp;by requiring them to register as nonprofits, ordered food delivery companies to provide more protections for their drivers and required tech conglomerate Tencent to relinquish exclusive licensing rights to online music.</p>



<p>Tencent CEO Ma Huateng’s fortune declined by $4.7 billion to $47.5 billion this week as the company’s shares fell by 8.5%. The CSI 300 Index, which tracks the performance of the largest stocks listed in China, declined by 5.5% this week, and the Hang Seng Index tracking the Hong Kong stock market fell by 5%.</p>



<h2 class="wp-block-heading" id="h-here-are-the-billionaires-whose-fortunes-fell-the-most-this-week">HERE ARE THE BILLIONAIRES WHOSE FORTUNES FELL THE MOST THIS WEEK.</h2>



<p><em>The net worth change is from close of markets Friday, July 23 to Friday, July 30.</em></p>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-1-jeff-bezos"><strong>1 | JEFF BEZOS</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-192-4-billion-down-16-8-billion">NET WORTH |&nbsp;<strong>$192.4 BILLION, DOWN $16.8 BILLION</strong></h3>



<h3 class="wp-block-heading" id="h-country-united-states">COUNTRY |&nbsp;<strong>UNITED STATES</strong></h3>



<h3 class="wp-block-heading" id="h-source-of-wealth-amazon">SOURCE OF WEALTH |&nbsp;<strong>AMAZON</strong></h3>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-2-mackenzie-scott"><strong>2 | MACKENZIE SCOTT</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-56-billion-down-5-5-billion">NET WORTH |&nbsp;<strong>$56 BILLION, DOWN $5.5 BILLION</strong></h3>



<h3 class="wp-block-heading" id="h-country-united-states-1">COUNTRY |&nbsp;<strong>UNITED STATES</strong></h3>



<h3 class="wp-block-heading" id="h-source-of-wealth-amazon-1">SOURCE OF WEALTH |&nbsp;<strong>AMAZON</strong></h3>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-3-ma-huateng"><strong>3 | MA HUATENG</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-47-5-billion-down-4-7-billion">NET WORTH |&nbsp;<strong>$47.5 BILLION, DOWN $4.7 BILLION</strong></h3>



<h3 class="wp-block-heading" id="h-country-china">COUNTRY |&nbsp;<strong>CHINA</strong></h3>



<h3 class="wp-block-heading" id="h-source-of-wealth-internet-media-tencent">SOURCE OF WEALTH |&nbsp;<strong>INTERNET MEDIA / TENCENT</strong></h3>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-4-wang-xing"><strong>4 | WANG XING</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-17-1-billion-down-4-2-billion">NET WORTH |&nbsp;<strong>$17.1 BILLION, DOWN $4.2 BILLION</strong></h3>



<h3 class="wp-block-heading" id="h-country-china-1">COUNTRY |&nbsp;<strong>CHINA</strong></h3>



<h3 class="wp-block-heading" id="h-source-of-wealth-e-commerce-meituan">SOURCE OF WEALTH |&nbsp;<strong>E-COMMERCE / MEITUAN</strong></h3>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-5-zhang-yong"><strong>5 | ZHANG YONG</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-11-1-billion-down-4-billion">NET WORTH |&nbsp;<strong>$11.1 BILLION, DOWN $4 BILLION</strong></h3>



<h3 class="wp-block-heading" id="h-country-singapore">COUNTRY |&nbsp;<strong>SINGAPORE</strong></h3>



<h3 class="wp-block-heading" id="h-source-of-wealth-restaurants-haidilao">SOURCE OF WEALTH |&nbsp;<strong>RESTAURANTS / HAIDILAO</strong></h3>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-6-yang-huiyan"><strong>6 | YANG HUIYAN</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-27-9-billion-down-2-6-billion">NET WORTH |&nbsp;<strong>$27.9 BILLION, DOWN $2.6 BILLION</strong></h3>



<h3 class="wp-block-heading" id="h-country-china-2">COUNTRY |&nbsp;<strong>CHINA</strong></h3>



<h3 class="wp-block-heading" id="h-source-of-wealth-real-estate">SOURCE OF WEALTH |&nbsp;<strong>REAL ESTATE</strong></h3>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-7-hui-ka-yan"><strong>7 | HUI KA YAN</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-14-6-billion-down-2-6-billion">NET WORTH |&nbsp;<strong>$14.6 BILLION, DOWN $2.6 BILLION</strong></h3>



<h3 class="wp-block-heading" id="h-country-china-3">COUNTRY |&nbsp;<strong>CHINA</strong></h3>



<h3 class="wp-block-heading" id="h-source-of-wealth-real-estate-1">SOURCE OF WEALTH |&nbsp;<strong>REAL ESTATE</strong></h3>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-8-mukesh-ambani"><strong>8 | MUKESH AMBANI</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-77-6-billion-down-2-5-billion">NET WORTH |&nbsp;<strong>$77.6 BILLION, DOWN $2.5 BILLION</strong></h3>



<h3 class="wp-block-heading" id="h-country-india">COUNTRY |&nbsp;<strong>INDIA</strong></h3>



<h3 class="wp-block-heading" id="h-source-of-wealth-reliance-industries">SOURCE OF WEALTH |&nbsp;<strong>RELIANCE INDUSTRIES</strong></h3>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-9-pierre-omidyar"><strong>9 | PIERRE OMIDYAR</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-24-3-billion-down-2-5-billion">NET WORTH |&nbsp;<strong>$24.3 BILLION, DOWN $2.5 BILLION</strong></h3>



<h3 class="wp-block-heading" id="h-country-united-states-2">COUNTRY |&nbsp;<strong>UNITED STATES</strong></h3>



<h3 class="wp-block-heading" id="h-source-of-wealth-ebay-paypal">SOURCE OF WEALTH |&nbsp;<strong>EBAY, PAYPAL</strong></h3>



<hr class="wp-block-separator"/>



<h2 class="wp-block-heading" id="h-10-li-xiting"><strong>10 | LI XITING</strong></h2>



<h3 class="wp-block-heading" id="h-net-worth-22-billion-down-2-5-billion">NET WORTH |&nbsp;<strong>$22 BILLION, DOWN $2.5 BILLION</strong></h3>



<h3 class="wp-block-heading" id="h-country-china-4">COUNTRY |&nbsp;<strong>CHINA</strong></h3>



<h3 class="wp-block-heading" id="h-source-of-wealth-medical-devices">SOURCE OF WEALTH |&nbsp;<strong>MEDICAL DEVICES</strong></h3>



<hr class="wp-block-separator"/>



<p><strong><em>By Hank Tucker, Forbes Staff</em></strong></p>


Billionaire LVMH Moet Hennessy Louis Vuitton SE Chairman Bernard Arnault at VivaTech 2021

Bernard Arnault Once Again The World’s Richest Person After Jeff Bezos Loses Nearly $14 Billion In One Day


<p><strong>TOPLINE</strong>: Shares of Amazon fell as much as 8% Friday after the e-commerce juggernaut disclosed a massive fine from European regulators for allegedly breaking regional privacy laws and posted second-quarter earnings results that failed to meet Wall Street expectations, putting the longtime market leader on track for its worst day in more than a year. </p>



<h3 class="wp-block-heading" id="h-key-facts">KEY FACTS</h3>



<p>As of 11:15 a.m. EDT, Amazon stock has plunged 7% Friday to about $3,349.50, pushing the firm&#8217;s market capitalization down below $1.7 trillion and wiping out nearly $130 billion from a closing level above $1.8 trillion Thursday.</p>



<p>Ushering in the massive losses, Amazon posted second-quarter revenue after Thursday&#8217;s market close of $113.1 billion—up 27% year over year, but falling short of average analyst expectations totaling $115 billion.</p>



<p>Despite soaring more than 48%, net income of more than $7.7 billion also fell slightly short of estimates, which called for about $7.8 billion.</p>



<p>The stark decline also comes after Amazon&nbsp;<a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001018724/000101872421000020/amzn-20210630.htm" target="_blank" rel="noreferrer noopener">disclosed</a>&nbsp;a $885 million (746 million euros) fine, levied on July 16, by the Luxembourg National Commission for Data Protection, which claims Amazon&#8217;s processing of personal data did not comply with European regulations.&nbsp;</p>



<p>In the filing, Amazon, which in a statement asserts no data breach has occurred, said it believes the watchdog&#8217;s decision is &#8220;without merit&#8221; and that it intends to appeal the ruling and defend itself &#8220;vigorously&#8221; in the matter.</p>



<p>Amazon&#8217;s Friday plunge puts it on track for its worst one-day decline since the height of pandemic uncertainty tanked the broader market in March 2020.</p>



<h3 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE&nbsp;</h3>



<p>&#8220;Consumers&#8217; online shopping levels are returning to more normal levels as they shift some spending to other entertainment sources and offline shopping,&#8221; Morningstar analyst Dan Romanoff said in a Friday note. &#8220;Meanwhile, the company continues to add capacity [and costs] at a breakneck pace in order to meet customer demand and one day delivery,&#8221; Romanoff added, pointing out Amazon has already nearly doubled its footprint during the last 18 months.</p>



<h3 class="wp-block-heading" id="h-surprising-fact">SURPRISING FACT</h3>



<p>Shares of Amazon are now down more than 10% from a record closing high of $3,719 earlier this month.</p>



<h3 class="wp-block-heading" id="h-tangent">TANGENT</h3>



<p>Amazon far underperformed the broader market Friday. The Dow Jones Industrial Average, which doesn&#8217;t include Amazon, ticked down just 0.2%, while the S&amp;P 500, which counts the retail giant as its third-largest component, fell 0.4%.</p>



<h3 class="wp-block-heading" id="h-chief-critic">CHIEF CRITIC</h3>



<p>“Maintaining the security of our customers’ information and their trust are top priorities. There has been no data breach, and no customer data has been exposed to any third party. These facts are undisputed,” Amazon said in a statement Friday. “The decision relating to how we show customers relevant advertising relies on subjective and untested interpretations of European privacy law, and the proposed fine is entirely out of proportion with even that interpretation.”</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.bbc.com/news/business-58024116" target="_blank" rel="noreferrer noopener">Amazon hit with $886m fine for alleged data breach</a> <em>(BBC)</em></p>



<p><strong><em>By Jonathan Ponciano, Forbes Staff</em></strong></p>


Amazon Unveils Its First Smartphone

Amazon Stock Loses $130 Billion In Market Value After $885 Million Fine And Disappointing Earnings Report


<p><strong>Despite detractors and challenges, smartphone stock brokerage Robinhood is seeding the next generation of investors and entrepreneurs.</strong></p>



<div class="wp-block-image"><figure class="alignleft size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-1027918206-812x1024.jpg" alt="" class="wp-image-47930" width="270" height="340" srcset="https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-1027918206-812x1024.jpg 812w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-1027918206-scaled-300x379.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-1027918206-scaled-600x757.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-1027918206-238x300.jpg 238w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-1027918206-768x969.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-1027918206-1218x1536.jpg 1218w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-1027918206-1624x2048.jpg 1624w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-1027918206-scaled.jpg 2029w" sizes="(max-width: 270px) 100vw, 270px" /><figcaption>SAN FRANCISCO, CA &#8211; SEPTEMBER 06:  Robinhood Co-Founder and Co-CEO Baiju Bhatt speaks onstage during Day 2 of TechCrunch Disrupt SF 2018 at Moscone Center on September 6, 2018 in San Francisco, California.  (Photo by Steve Jennings/Getty Images for TechCrunch)</figcaption></figure></div>



<p class="has-drop-cap">This morning the stock brokerage trading app Robinhood will issue shares in a public offering that values the eight year old company at some $32 billion. It’s young founders, Vlad Tenev, 34, and Baiju Bhatt, 36, are now worth $2 billion and $3 billion, respectively, and if Robinhood’s shares rise from its expected offering price of $38 to as high as $300 over the next eight or so years, each will be rewarded with several billions more worth of stock. It took Charles Schwab, the famous brokerage industry innovator, a quarter of a century from founding the company in 1971 to grind his way to billionaire-dom at age 59.</p>



<p>Despite some glaring hiccups during its rapid rise, the fledgling mobile phone-based brokerage firm is by almost every measure a triumph of entrepreneurship and innovative marketing. Not since 1975, when the SEC deregulated brokerage commissions, giving rise to discount brokerages like Schwab, has there been a more disruptive force in the retail stock market. Robinhood invented no minimum, commission-free trading, which is now standard across the industry including at TD Ameritrade, Fidelity, Schwab, Vanguard and Merrill Lynch.&nbsp;</p>



<p>Robinhood’s&nbsp; mission, oft repeated, is to “democratize finance for all” and the fact that more than 22 million people — most of them first time investors—have already funded Robinhood accounts is strong evidence of mission accomplished. After all, according to the most recent data from the Federal Reserve only 14% of Americans own stocks directly and slightly more than 50% are invested in stocks indirectly via funds. The two Millennial creators of Robinhood and their army novice traders are not only shaking the financial foundations of Wall Street, but they’re also moving markets, even if the wild meme stock surges and purges they generate are unhinged from traditional valuation models.&nbsp;&nbsp;</p>



<div class="wp-block-image"><figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-530148978-1024x713.jpg" alt="" class="wp-image-47927" width="543" height="377" srcset="https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-530148978-1024x713.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-530148978-scaled-300x209.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-530148978-scaled-600x418.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-530148978-768x535.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-530148978-1536x1070.jpg 1536w, https://cms.forbesafrica.com/wp-content/uploads/2020/09/GettyImages-530148978-2048x1427.jpg 2048w" sizes="(max-width: 543px) 100vw, 543px" /><figcaption>NEW YORK, NY &#8211; MAY 10:  Co-founder and co-CEO of Robinhood Vladimir Tenev speaks onstage during TechCrunch Disrupt NY 2016 at Brooklyn Cruise Terminal on May 10, 2016 in New York City.  (Photo by Noam Galai/Getty Images for TechCrunch)</figcaption></figure></div>



<p>But some caution is warranted. On its way to achieving its mission with astonishing speed, Robinhood has committed three would-be sins. First, in order to attract young inexperienced investors, it gamified, dumbed down and made its trading app highly addictive, using many of the same techniques employed by social media startups and video game makers. Its second sin, according to critics, is that underpinning its profit model is the need to sell its customers’ orders to Wall Street’s biggest sharks, quantitative trading firms like billionaire Ken Griffin’s Citadel Securities. Both of these controversial tactics figured prominently in Congressional Hearings last March over trading in meme stocks like GameStop.</p>



<p>Finally, Robinhood has done a poor job handling its customers’ trades, for which it has paid over $130 millions in fines, settlements and penalties. The trading platform was all but inoperable during the most volatile trading days of the Coronavirus crisis, leading to numerous class action lawsuits, which remain ongoing. During the meme stock bubble of 2021, it halted trading in a handful of stocks like GameStop and AMC Entertainment as it faced billions of dollars in margin calls, outraging customers and lawmakers. The incident forced Robinhood to raise billions of dollars in emergency convertible debt in February, which will be yet another windfall for hedge funds. The $2.5 billion in convertible notes it raised carry high interest rates, low conversion hurdles and a goody bag of $369 million in warrants, which will dilute the company’s stock. The problems are ongoing. Scores of federal and state authorities continue to home in on Robinhood and investigate the company. Co-founder Vlad Tenev even had his cell phone seized.&nbsp;</p>



<div class="wp-block-image"><figure class="alignright is-resized"><img decoding="async" src="https://thumbor.forbes.com/thumbor/960x0/https%3A%2F%2Fspecials-images.forbesimg.com%2Fimageserve%2F610289e2f67bf865370ee929%2F1998%2F0x0.jpg%3Ffit%3Dscale" alt="1998" width="-51" height="-70"/><figcaption>Forbes April 6, 1998 cover.&nbsp;<small>FORBES</small></figcaption></figure></div>



<p>Ultimately, Robinhood’s long term success and legacy will depend on whether the good that Robinhood is achieving, disrupting Wall Street and introducing millions of newcomers to investing, outweighs the negative effects and risks to which it is also exposing them. Among its 22 million customers, it considers 98% to be “monthly active users,” greater engagement than a social media app. But its revenues are concentrated, driven by a mob of speculators who can be wiped out in a day, week or month. Consider this: Robinhood’s customers hold $80 billion in assets under custody, including $2 billion worth of options. However, those options trades represented 37% of Robinhood’s overall revenues last quarter.</p>



<p>Regardless of the risks inherent in its operating model, it&#8217;s likely that Robinhood’s baby-faced legions will become tomorrow’s entrepreneurs, financiers and long-term investors. In 1998, during the dotcom stock frenzy, Forbes ran a cover profiling young day traders under the headline “A Bunch Of Kids Are Tormenting Wall Street!” Twenty three years later, the renegade “guerrilla marketmaker” featured on our cover, Serge Milman is 48. He manages a hedge fund and is co-founder of 840 Venture Partners, a VC&nbsp; firm with investments in startups including Robinhood competitor, Public.com. “I’m totally part of the establishment now,” says Milman.</p>



<p>Forbes reporters first began tracking Robinhood in 2014, not long after its inception. In 2015, the brokerage startup was named to our inaugural Fintech 50 and in 2016 founder Vlad Tenev appeared on our 30 Under 30 list.  Below you will find the best of Forbes coverage of Robinhood including our award winning stories in 2020 covering the tragic <a href="https://www.forbes.com/sites/sergeiklebnikov/2020/06/17/20-year-old-robinhood-customer-dies-by-suicide-after-seeing-a-730000-negative-balance/?sh=57e9d3b16384">death by suicide of 20-year old Robinhood trader</a> Alexander Kearns and our deep dive into Robinhood’s business practices, “<a href="https://www.forbes.com/sites/jeffkauflin/2020/08/19/the-inside-story-of-robinhoods-billionaire-founders-option-kid-cowboys-and-the-wall-street-sharks-that-feed-on-them/?sh=2bbcf90b268d">The Inside Story Of Robinhood’s Billionaire Founders, Option Kid Cowboys And The Wall Street Sharks That Feed On Them</a>.”</p>



<p><strong>By Matt<em> Schifrin, Forbes Staff</em></strong> <em><strong>&amp; Antoine Gara, Forbes Staff</strong></em></p>


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