Elon Musk’s fortune slumped $13.6 billion Thursday after Tesla Inc. warned it may have to keep cutting the prices of its electric vehicles, sending shares tumbling.

The drop in net worth to $241 billion further narrows the wealth gap between Musk and Bernard Arnault, the world’s two richest people, according to the Bloomberg Billionaires Index. Musk’s fortune still exceeds that of Arnault, chairman of luxury goods maker LVMH, by about $40 billion.

Shares of Austin-based Tesla dropped 7% to $271.02 at 11:30 a.m. in New York after the company warned of more hits to its already-shrinking profitability. Months of markdowns have taken a toll on automotive gross margin, which fell to a four-year low in the second quarter. Musk said Wednesday Tesla will have to keep lowering prices if interest rates continue to rise.

Read More: Tesla Sinks as Musk Warns of More Blows to Profitability

Musk, 52, derives his wealth primarily from his stake in the EV manufacturer, as well as his holdings in Space Exploration Technologies and Twitter. His wealth increased about $118 billion this year through Wednesday, as shares of Tesla climbed 136%.

Arnault, 74, has seen his net worth increase by $40.7 billion this year to $203 billion. Shares of Paris-based LVMH have gained 25% in 2023.

--With assistance from Jack Witzig.