Elon Musk's wealth declined by $20.3 billion in a day after Tesla warned of potential price cuts on its electric vehicles.

The drop in net worth to $234.4 billion is the seventh-largest decline ever in the Bloomberg Billionaires Index.

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The wealth gap between Elon Musk and Bernard Arnault, the chairman of LVMH, narrowed to about $33 billion after the slump.

Musk became the world's richest person in June by surpassing Bernard Arnault in the Bloomberg Billionaires Index.

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Several other US technology billionaires, including Jeff Bezos, Larry Ellison, Steve Ballmer, Mark Zuckerberg, Larry Page, and Sergey Brin, also saw significant declines in their net worth.

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Tesla's shares fell 9.7% to $262.90 in New York, the most significant drop since April 20, due to the warning about further price cuts.

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Months of markdowns have already impacted Tesla's automotive gross margin, which reached a four-year low in the second quarter.

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Elon Musk's wealth primarily comes from his stake in Tesla Inc., as well as his holdings in Space Exploration Technologies and Twitter.

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The ongoing competition between Elon Musk and Bernard Arnault for the top spot on the Bloomberg Billionaires Index continues to attract attention in the financial world.

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