Bernard Arnault and his family, who own luxury goods company LVMH, surpassed Musk on the list as Tesla shares fell sharply and the LVMH stock price simultaneously increased early this week.
Musk’s net worth clocked in at $176.8 billion as of Tuesday, compared to Arnault’s $186.6 billion, according to Forbes.
Arnault’s company includes many clothing and luxury brands as subsidiaries, including Sephora, Birkenstock, and Tiffany & Co.
Musk’s wealth is largely tied to Tesla, causing him to lose billions as shares fell 6.3 percent on Monday and another 4.1 percent on Tuesday.
He owns about 25 percent of the electric car company between stock and options, according to Forbes.
Tesla’s market cap has fallen by more than half this year after the company’s financial successes largely drove Musk’s rise to the top of the list.
But as Musk moved closer to purchasing Twitter, Tesla’s share price in mid-September began experiencing significant drops. Musk’s $44 billion takeover deal to own the social media company in part involved loans collateralized by Musk’s Tesla stock holdings.
He also runs the private space company SpaceX and Boring Company, a firm that aims to defeat traffic.
Musk has said he did not purchase Twitter to make money and instead wanted to “create a digital town square.”
He laid off more than half of the social media’s staff since closing the deal in late October and ushered in new content moderation policies that have drawn ire from liberals and many civil rights groups.
Musk’s net worth remains more than $40 billion higher than the No. 3 on Forbes’s list, Indian industrialist Gautam Adani. Jeff Bezos, the founder of Amazon, clocked in at No. 4 on the list with a net worth of $115.7 billion.