Tesla is having a very bad day
Tesla is no longer the biggest automaker in America. Following the recent plummet in the electric car company's shares, the top position now belongs to General Motors, valued at $52.7 billion to Tesla's $51.6 billion.
On Thursday, Tesla's stock fell another 5 percent, continuing its multi-day tumble. Since hitting an "all-time high" just two weeks ago, Tesla's shares had dropped by a total of 20 percent as of Thursday afternoon. Losses for the week now sit at 14 percent.
The week's drop coincides with Tesla's disappointing second-quarter results, which the company has blamed on "a production issue with its 100 kilowatt-hour battery packs," CNBC reported. Tesla's new Model S also recently failed to meet top safety standards, seemingly debunking Tesla's claim that the car was the safest ever.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
High Tech editor Fred Hickey contended Tesla's stock "was pushed to ridiculous levels on the notion that the Model 3 would be a slam-dunk success," and he also noted that the company's "$100,000+ models aren't selling as well and are piling up in inventory." "This bubble stock is losing air rapidly, as it should," Hickey said.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
'Make legal immigration a more plausible option'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
LA-to-Las Vegas high-speed rail line breaks ground
Speed Read The railway will be ready as soon as 2028
By Peter Weber, The Week US Published
-
Israel's military intelligence chief resigns
Speed Read Maj. Gen. Aharon Haliva is the first leader to quit for failing to prevent the Hamas attack in October
By Justin Klawans, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published