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.
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.
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.
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.
Months of markdowns have already impacted Tesla's automotive gross margin, which reached a four-year low in the second quarter.
Elon Musk's wealth primarily comes from his stake in Tesla Inc., as well as his holdings in Space Exploration Technologies and Twitter.
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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