Tesla Shares Down After Gigafactory Expansion Put on Hold

Plus, Bed Bath & Beyond plummets after earnings report.


3 min read

Opinions expressed by Entrepreneur contributors are their own.


Just a few percentage points from their all-time highs, the major stock indexes appear to be waiting for a catalyst to take them over the top.

It could be a trade deal with China. The two sides appear to be ironing out the details of an enforcement mechanism for the agreement.

It could be corporate earnings reports, which begin in earnest next week. The numbers won’t be strong, but if they beat lowered expectations, they may lift stock prices.

A late-afternoon rally pared losses on the stock indexes today. The Dow, and Nasdaq Composite fell 0.05 percent and 0.21 percent respectively, while the S&P 500 was flat on the day. The Entrepreneur Index™ was down 0.28 percent with retailers, drug-makers and Tesla posting the biggest declines.

Tesla shares were down 2.77 percent, after it was reported that the company and partner Panasonic were delaying further investment in a $4.5 billion Gigafactory outside Reno, Nevada. In its fourth quarter letter to shareholders, Tesla suggested it would likely build its Model Y crossover vehicle at the huge factory.

The company’s positive spin on the news was that it was more productively tapping existing capacity at other facilities to meet current needs. Investors appear worried that demand for Tesla vehicles may be waning and/or that its relationship with battery producer Panasonic may be fraying. Tesla stock is down 19.3 percent this year.

Bed Bath & Beyond continued to be the most active stock on the Entrepreneur Index™. It fell 8.76 percent today after posting slightly better earnings results than expected yesterday. Good earnings, however, may mean bad news for investors. The stock has soared since activist investors announced they would try to replace the BBBY board and oust CEO Steven Temares. Management increased its guidance for 2019 and if it can show enough improvement, a major overhaul of the struggling retailer could be averted. BBBY shares are still up 56.5 percent so far this year.

Other retailers were also weak today. L Brands (-2.28 percent), Costco Wholesale Corp. (-1.78 percent) and Gap Inc. (-1.66. were all down sharply. Walmart (1.2 percent) and Dollar Tree Inc. (1.18 percent), however, posted moderate gains.

Cerner Corp., another company on the Entrepreneur Index™ recently targeted by an activist investor, fell 2.37 percent today. Shares in the healthcare information technology provider jumped more than ten percent on Tuesday after hedge fund Starboard Value LP successfully installed four new directors on the company’s board. The shares are up 18.6 percent so far this year.

Gains on the Entrepreneur Index™ today were muted. Homebuilder D.R. Horton Inc. had the biggest jump, rising 2.09 percent. Other notable gains included truck-maker PACCAR Inc. (1.35 percent) and pest-control company Rollins Inc. (1.36 percent). Netflix, up 1.02 percent, had the biggest gain in the technology sector.

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.

Source

more recommended stories

  • How to Avoid Horrific Musk-Like Employee Reviews

    Elon Musk teaches us what not.

  • Bill Gates Says Startup Founders Should Not Take Weekends or Vacations in the Early Days of Building a Company

    He did say, however, that people.

  • FDA Begins Evaluating Cannabis Scientifically

    DEA has refused to do that.

  • How This Entrepreneur’s French Background Helped Him Launch a Risky Food Brand That’s a Top Seller Today

    Kidfresh grew out of a desire.

  • Become a Master at Adobe Photoshop With This Bundle

    The Complete Master Photoshop & Adobe.

  • ‘Sign in With Apple’ Promises Better Customer Experiences But Is It Just More Lock-in?

    Sign In with Apple is yet.

  • Acquire Traffic and Drive Revenue With This $11 Digital Marketing Course

    The Complete Guide to Digital Marketing.

  • Is Your Company Flexible Enough to Survive Modern Society?

    This tech entrepreneur discusses the power.

  • New Report Forecasts $40B Global Cannabis Market by 2024

    The US is expected to remain.

  • Why Excuses Are Sometimes Misdiagnosed as a Lack of Willpower When They Shouldn’t Be

    June 21, 2019 1 min read.

  • Facebook Launches a New Cryptocurrency Called Libra

    Plus, Lululemon launches a line of.

  • Plant-Based Alternative ‘Just Egg’ Is Upending the Liquid Egg Market

    The mung bean-based product is the.

  • Stock Market Hits New High Thanks to Fed Policy Shift

    The escalation of tensions in the.

  • 10 Entrepreneurs Who Are Showing Why Blockchain Is Here to Stay

    Thinking of jumping into this new.

  • There’s Growing Evidence Cannabis Helps Older Adults Keep Their Jobs for Years Longer

    Adults 65 and older are embracing.

  • The Fed Gave the Stock Market What It Expected, but Not What President Trump Wanted

    Plus, Adobe Inc. is up big.

  • The Number One Reason Women Entrepreneurs Should Look to Support Each Other

    The CEO of this fertility coverage.

  • Investors Optimistic for President Trump and Chinese Leader Xi Jinping’s Meeting Next Week

    NVIDIA Corp. soars on hopes for.

  • How Illinois Became the Only State to Legalize Weed Sales Without a Referendum

    Illinois lawmakers managed to pass a.

  • How Industrial-Scale Extraction Will Make CBD Accessible to Everyone Who Needs It

    A Kentucky company is working on.

  • Elon Musk Says He’s Through With Twitter, as Facebook and Tesla Drive Entrepreneur Index Higher

    Facebook is getting a rousing welcome.

  • 7 Ways to Deal with Anxiety on the Job

    If you’re seriously stressed at work,.

  • Helping Dads Discover Medical Cannabis This Father’s Day

    Many seniors, maybe including your own.

  • Diversify Your Marketing Portfolio With These Digital Assets

    Choose from curated fonts, graphics, templates,.

  • 5 Keys to Successfully Leading a Family Business

    Family businesses aren’t always easy, but.

  • No One Knows It But These 3 Industries Now Depend on AI

    AI is revolutionizing industries across the.

  • Being an Influencer is Not a Job

    Here’s how influencers have evolved to.

  • Why Mood-Based Cannabis Products Are About to Blowup

    Cannabis can be consumed to achieve.

  • Facebook Stock Rises as Company Prepares to Unveil Its Cryptocurrency

    The tech giant’s cryptocurrency reportedly has.

  • ‘I’m Fighting for Paternity Leave — So Should You’

    Supporting men as caregivers is a.

  • Cannabis Companies Embrace Pride Month

    In a month to celebrate diversity,.

  • Oil Tanker Attacks Lift Energy Stocks as Market Ends Two-Day Slide

    Two tankers were attacked in the.