(Bloomberg) — Tesla Inc. is off to another bumpy start this week after Chief Executive Officer Elon Musk tweeted that plans for its high-end Model S Plaid+ sedan had been canceled.
Shares of the electric-vehicle maker fell as much as 2.2% in premarket trading on Monday. The stock has declined more than 30% since late-January, following a run-up in price that drove its market capitalization to as high as $837 billion and briefly helped make Musk the world’s richest person.
A tweet from Musk on Sunday said that the Plaid+ would be canceled because there was no need for it as the Plaid version “is just so good.” Tesla had said the car would offer more than 520 miles (837 kilometers) of range, compared with about 390 for the regular Plaid model and had been taking refundable deposits for the car for months.
This is the second straight week that Tesla investors are having to face a wave of negative news. Last week, shares slipped after it was reported that sales in China for May had fallen by nearly half from April. That news came the same day that a U.S. regulator disclosed recalls of Model 3 and Y vehicles over separate seat-belt flaws.
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.
