- Tesla shares dropped over 8% following the company’s latest earnings report and a new business announcement by Elon Musk.
- Tesla’s revenue fell 12% and profit dropped 16% for the April-June quarter compared to last year.
- Elon Musk posted about reviving the Vine social media app “in AI form,” fueling speculation and uncertainty among investors.
- Competition in electric vehicles continues to grow, especially in Europe and China, while some buyers are put off by Musk’s political actions.
- Musk’s approach to new ventures and politics has previously influenced Tesla’s stock price, sometimes negatively.
Tesla shares dropped sharply Thursday after the company reported disappointing quarterly financial results and Elon Musk announced plans to revive the Vine social media platform. At the close of trading, the electric vehicle maker’s stock had fallen more than 8%.
During Tesla’s earnings report for April to June, the company said revenue decreased by 12% and profit dropped by 16%. Many potential buyers are reportedly hesitant due to Musk’s increasing involvement in politics, and market competition has intensified in Europe and China.
On Thursday morning, Musk posted on X about bringing back Vine “in AI form,” though he did not provide further details. The announcement sparked speculation, as past ventures pursued by Musk have affected Tesla’s stock price both positively and negatively. When the ventures are tied to his existing companies, the Tesla stock tends to rise. However, when he decided to pursue politics and joined Donald Trump’s presidential administration, the stock took a heavy hit.
Vine, a former social platform known for its short video clips, had set the groundwork for apps like TikTok, Reels, and YouTube Shorts. Efforts to bring back Vine have been mentioned since Musk’s acquisition of Twitter (now X) in 2022, including a public poll and media reports that a reboot was being considered. Earlier this year, Musk mentioned revisiting the platform as a possible replacement if a TikTok ban went into effect.
Rumors have suggested that X could integrate features from a revived Vine, but representatives for the platform have not confirmed any plans.
Earlier, Axios reported on possible work to reboot Vine, and a previous poll showed public interest in its return. For now, the drop in Tesla’s share price highlights ongoing concerns following recent earnings and Musk’s new business initiatives.
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