U.S. stocks tumbled across the board, with the Nasdaq sliding over 1%, while the Dow Jones managed to post slight gains. This broad market decline sparked a sharp sell-off in electric vehicle (EV) stocks.
On Monday, Tesla shares fell 2.15%, Rivian dropped 7.79%, Lucid Motors plunged 9.15%, and Nikola Corp. plummeted a staggering 32.42%.
Tesla closed at $330.53, down 2.15%. This decline shaved its market capitalization to $1.063 trillion, leaving it barely clinging to its trillion-dollar status.
As a result, its market capitalization slipped from 7th to 8th place. Berkshire Hathaway, whose shares rose on strong earnings, climbed to 7th, pushing Tesla down one spot.
Bloomberg reported that China’s BYD is expected to launch its robotaxi service soon. The company previously announced plans to include autonomous driving features in all its vehicles at no extra cost.
As a result, BYD’s stock has been on an upward trajectory while Tesla continues to face challenges.
Tesla’s more than 2% drop triggered a sharp decline in other EV stocks. Lucid plunged 9.15% to $2.78, Rivian fell 7.79% to $11.96, and Nikola plummeted 32.42% to $0.25.
Lucid’s steep 9% drop followed a downgrade from brokerage firm Redburn. Redburn lowered its rating from neutral to sell, citing intensifying competition. It also slashed Lucid’s price target from $3.50 to $1.13.
With Lucid currently trading at $2.78, the new target suggests a potential additional decline of 59%.
Meanwhile, Nikola’s stock has continued its freefall following its recent bankruptcy protection filing, tumbling to just $0.25 per share.