Tesla stock was dropping again on Friday, putting the electric-vehicle maker on track for another bad week and its worst month in more than a year.
Shares slid 1.2% to $369.88 in early trading. The S&P 500 was 0.8% lower as investors continued to dump chip makers amid worries about how much longer the AI boom can last.
Tesla stock has dropped every day so far this week, falling 8.5% over that period. The stock is down 15% in June, putting it on pace for its worst month since February 2025, according to Dow Jones Market Data.
The selloff has been driven by a mixture of negative headlines and worries about the state of the broader market.
Multiple arms of the federal government said this week that they were investigating a Tesla Model 3 crash that happened near Houston. The vehicle veered off the road last Friday, hitting a home and killing a person inside.
The driver told police that Tesla's automated driving system was engaged when the crash happened. Tesla's vice president of AI and software Ashok Elluswamy wrote in a post on X that the driver had manually pressed the accelerator pedal down.
The ongoing investigations are a worry for investors, but so is the tech selloff that is battering the broader market. Investors have been ditching AI-linked stocks due to worries about surging memory-chip prices.
Rocket and AI company SpaceX have also tumbled this week, meaning that SpaceX and Tesla CEO Elon Musk has lost his trillionaire title.
Write to George Glover at george.glover@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 26, 2026 10:15 ET (14:15 GMT)
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