Tesla Shares Drop 25% in 2026 as Rising Rates and AI Spending Hit EV Stocks

3 articles · Updated · pluang.com · Aug 19

Tesla has fallen 25% year-to-date in 2026, leading a broader selloff in pure-play electric vehicle stocks.
Rising interest rates have pressured the sector by making car financing costlier, while investor worries over heavy AI spending have further weighed on high-growth names.
Rivian and Lucid have also dropped sharply, underscoring how standalone EV makers are lagging the wider auto market.
General Motors and other traditional automakers have held steady or gained, highlighting a shift away from EV-focused stocks toward companies seen as less exposed to rate and valuation pressure.

Sources

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