Weak Vehicle Deliveries at Tesla Sink Shares by More Than 10 Percent
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Tesla shares fell by more than 10 percent this morning because the automaker delivered far fewer vehicles than expected in the first quarter. Deliveries of Tesla's high-end models S and X were down more than 50 percent in the quarter. The company also shipped fewer mass-market Model three sedans than expected, according to data from Refinitiv. Meanwhile, a judge gave Tesla CEO Elon Musk and the Securities and Exchange Commission two weeks to work out their differences regarding a charge of contempt the regulator has leveled at Musk for tweets he made regarding Tesla's production. Tesla's stock ended the day down 8.18 percent -- the biggest decline on the Entrepreneur Index™.
The broader market was mixed with S&P 500 index posting a 0.21 percent gain while the Nasdaq Composite fell 0.05 percent. The Dow index, populated by large multinational companies, was up 0.64 percent as expectations mounted for a trade deal between China and the U.S. The Entrepreneur Index™, dragged down by Tesla and weak technology stocks, finished the day off 0.12 percent.
The market is eagerly awaiting a trade agreement between China and the U.S., and the two sides are reportedly close to a deal. The issue of enforcement of the agreement and whether tariffs would be used to punish non-compliance remains a sticking point.
Struggling retailers Bed Bath & Beyond (BBBY), L Brands and Gap Inc. all had strong gains today. BBBY, up 55 percent so far this year, had the biggest jump, rising 4.02 percent. L Brands and Gap Inc. were up 2.74 percent and 2.34 percent respectively. The three stocks are still down over the last 12 months.
Technology stocks were weak today with eight of 13 tech stocks on the Entrepreneur Index™ posting declines. Salesforce.com, down 2.52 percent, and Adobe Systems Inc., off 1.33 percent, had the biggest declines in the sector.
Other significant losses on the index today included REIT Extra Space Storage (-1.24 percent), pest-control company Rollins Inc. (-1.09 percent) and domain name registry Verisign Inc. (-1.04 percent).
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.