The S&P 500 took a breather from its record high as investors shuffled their money, ditching big tech like Nvidia and Meta. 

The lowest consumer price index in over three years sent rates down, making small caps and housing stocks the new favorites.

The S&P 500 slipped 0.88%, and the Nasdaq fell 1.95%, with Nvidia dropping a whopping 5%. The Dow eked out a small gain. 

Meanwhile, the Russell 2000 small-cap index soared 3.6%, bolstered by hopes of a Fed rate cut and an economic soft landing. Housing stocks stole the show, with Lennar and D.R. Horton leading the charge.

Before we get to the main story, let’s look at today’s heatmap.

Tesla's Robotaxi Delay Costs Elon Musk $11 Billion in One Day

Welp! Elon Musk just watched $11 billion vanish from his fortune faster than a SpaceX rocket launch. Why? Because one journalist just released some news that has Elon looking like the little boy that cried wolf in regards to Tesla’s Robotaxi release date.

If you’ve been on twitter the past couple of weeks, you’ve noticed all the fanboys praising the stock’s 11-day victory lap, which added a staggering $257 billion to its market cap. But all good things must come to an end. By market close Tesla’s shares took a 8% nosedive, plunging to just over $245. This was the biggest dip since March, marking its first red day since June 24. 

What triggered this? A Bloomberg bombshell revealed that Tesla decided to delay the launch of its eagerly-awaited Robotaxi service from August to October. The reason? The company needs more time to fine-tune the vehicle. As usual, Tesla had no comment.

But Tesla fans aren’t the only ones who probably punched a hole through their wall as they watched 0’s evaporate from their brokerage accounts. Elon Musk, the world’s wealthiest individual, felt the pinch more than anyone. His 13% stake in Tesla shrank from $188.2 billion to $176.8 billion.

 

Despite the setback, Musk still tops the billionaire leaderboard with a net worth of around $247.3 billion, comfortably ahead of Amazon’s Jeff Bezos. So I guess he’s still gonna be able to pay the office lease.

The 11-session rally wasn’t just a fluke; it was Tesla’s longest winning streak since last May, when shares soared by 41% over 13 days. But the recent drop has thrown a wrench in Tesla’s momentum.

So, what’s all the fuss about this Robotaxi? Earlier this year, Musk teased the grand unveiling of this mystery vehicle for August 8. This concept, which has been floating around since 2016, envisions a fleet of autonomous Teslas buzzing around, generating cash for their owners.

In a first-quarter earnings call, Musk laid out his vision: millions of autonomous Teslas with groundbreaking software (still in the works, of course). 

However, 2024 hasn’t been a smooth ride for Tesla’s stock, which slumped 20% in the first half of the year due to declining delivery numbers. The recent rally had just started to mend that rough patch, but now it seems we’re back to square one.

Tesla isn’t the only player in the self-driving game. Rivals like Alphabet’s Waymo and GM’s Cruise have been making strides, often leaving Tesla playing catch-up. Despite Musk’s bold claims since 2015 about achieving “full autonomy,” reality has been a bit more, shall we say, grounded.

The promises kept coming. By 2019, Musk was predicting a million robotaxi-ready Teslas by 2020. Fast forward to today, and we’re still waiting. Meanwhile, other companies are zipping ahead in the autonomous vehicle race. It’s almost like Musk’s timeline exists in a parallel universe. Maybe that’s how time works on Mars?

Tesla’s journey to autonomous driving is far from over. The Robotaxi might be delayed, but Musk’s vision remains laser-focused. Just remember, at Tesla, “unveil” dates are more of a teaser than a promise. Case in point: the electric Semi truck, unveiled in 2017, but it only hit the roads in December 2022.

As Tesla gears up for its October Robotaxi reveal, the market watches with bated breath. Will this delay turn into another notch in the belt of missed deadlines, or will Musk finally deliver the autonomous revolution he’s been promising for nearly a decade? I guess the silver lining of the situation is if the slump continues tomorrow, there could be a good buying opportunity for longterm Tesla believers.

Stock.News has positions in Tesla, Meta, Amazon, and Alphabet.