Elon Musk lost his position as the second richest man in the world Thursday following two consecutive days of price falls losses in Tesla shares.
On Thursday, Musk fell to third on the Forbes billionaires list as the ranking now shows his estimated net worth at $150.9 billion.
LVMH owner Bernard Arnault has overtaken Musk in the list, with an estimated fortune of $155.6 billion, pushing him closer to the world's richest man, Jeff Bezos, whose Forbes estimated fortune sits at $175.4 billion.
Before Thursday's ranking pushed Musk below Arnault, Musk was able to overtake Bezos in January. However, Bezos took back the title in mid-February and since then, the two have been taking turns on top.
Musk's fallback in the Forbes' list was largely affected by Tesla shares plunging over the past two days.
Particularly Wednesday, Musk losses were estimated to have hit $6.5 billion, and while Tesla stocks recovered for a few hours, Thursday was another bad day for the electric vehicle manufacturer.
On Thursday's session, Tesla shares plunged by nearly 4%, further snatching millions from Musk's fortunes. That's not the end of the story as a Tesla "megabull" admitted Thursday that his fund has sold over a million shares.
In an interview with CNBC's "Squawk Box," founder of investment management firm Baron Capital, Ronald "Ron" Baron admitted that the company has sold $1.7 million Tesla shares over the past six months.
Baron's move is crucial in the global stock market as he has been very optimistic about Tesla stocks and even predicted that the stock will climb to $2,000 sometime within the decade.
Baron said that "it was painful selling every single share" but that it had to be done as the shares were taking a large percentage of some Baron Capital portfolios.
The billionaire investor also revealed that he has not sold personal shares and is planning to retain those shares for at least 10 years. Baron has more than 1.1 million Tesla shares.
Some market experts have expressed their thoughts on why Tesla was hit so hard Wednesday.
Senior technology writer for The Motley Fool, Daniel Sparks, said it is likely that Tesla's stock was affected by a decline in growth stocks as the overall growth stock market has taken a serious hit over the past few days.
Barron's senior writer Allen Root wrote Wednesday that the sharp downturn in Tesla shares isn't the company's fault at all. Instead, Root said the reason was "fears of inflation."
For Root, fears of inflation and higher interest rates are equivalent to "poison" for "richly valued, high-growth stocks," and these fears are aspects that Tesla and other growth stock companies cannot control.
