TSLA: Tesla Stock Drops 8.4% in Big Tech Selloff, Delayed Robotaxi Launch

EV maker was the biggest loser in broad-based selloff that punished tech stocks. Robotaxi news made things worse. Then a downgrade followed.

• Tesla stock TSLA crashed 8.4% on Thursday after investors reacted to the news that the EV maker’s robotaxi release will be delayed by a couple months. The unveiling of the new AI-powered vehicle got pushed back to October from its previous rollout date August 8. Broadly, it was a bad day to be a tech stock as the high-flying sector got demolished during the session with the tech-heavy Nasdaq Composite sliding 2%.
• The Elon Musk-led company snapped an 11-day winning streak and dipped in the red for the year, after erasing a massive 40% drop since early January. The volatile stock has been a preferred choice for investors looking to bet on the artificial intelligence trend, moving at breakneck speed. And while AI has been the driver of super-mega gains across the stock market, not everyone’s on board with that concept.
• Swiss banking giant UBS UBSG downgraded Tesla shares on concerns that the AI hype has lifted the company’s shares “too much, too soon.“ “If market enthusiasm for AI diminishes, this may impact Tesla’s multiple,” analysts at UBS wrote in a note, axing their rating to “sell” from “neutral”. Ahead of Friday’s opening bell, shares of Tesla were showing a loss of about 1.2%.