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Tesla and Alphabet Stocks Plummet After AI Spending Announcements
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Shares of Tesla and Alphabet fell on Thursday after both companies signaled increased AI spending, unnerving investors worried about the mounting costs of the artificial intelligence boom.
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Tesla and Alphabet Stocks Plummet After AI Spending Announcements
Shares of Tesla and Alphabet fell on Thursday after both companies signaled increased AI spending, unnerving investors worried about the mounting costs of the artificial intelligence boom. Tesla stock closed 14.5% lower, while Alphabet lost 7.1%. Elon Musk's EV maker posted its worst day since March 2025, losing about $200 billion in market cap. The Google parent saw about $100 billion in market value erased. The announcements were made by both companies as they invest in artificial intelligence, with Tesla and Alphabet signaling higher spending in the sector. The move has raised concerns among investors about the mounting costs of the artificial intelligence boom.
Tesla Falls 15%, Alphabet Drops 8% as AI Spending Concerns Mount
Tesla shares have fallen 15% to around $319, following disappointing quarterly earnings. Alphabet has also declined, with concerns about rising AI investment overshadowing positive results. The sell-off has resulted in a 1.55% drop in the S&P 500, with both companies contributing to the decline. The investment in AI has been increasing in recent months, with many companies looking to capitalize on the growing demand for AI technology.
Tesla Falls 15%, Alphabet Drops 8% as AI Spending Concerns Mount
Shares of Tesla and Alphabet fell sharply on Thursday as investors expressed concerns over the rising costs of artificial intelligence. Tesla shares fell to around $319 following disappointing quarterly earnings, while Alphabet declined despite higher revenue. The sell-off in the two tech giants contributed to a 1.55% drop in the S&P 500. The concerns over AI spending are likely to continue to weigh on the stocks of both companies in the coming days.
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