Why Tesla, Newell Brands, and Blue Apron Slumped Today
The stock market once again held its own on Thursday as market participants reacted to the long-awaited release of the Republican tax reform proposal. The major benchmark indexes stayed relatively close to the unchanged mark as investors digested possible changes to the tax code, including lower corporate tax rates, fewer tax brackets, and major revisions to some popular deductions and other tax breaks.
But it was earnings season that continued to play the key role in driving individual stock performances, with both good and bad news coming from various sectors of the market. Tesla (NASDAQ: TSLA), Newell Brands (NYSE: NWL), and Blue Apron (NYSE: APRN) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Tesla dropped 7% after the electric vehicle maker reported its third-quarter financial results. The company's net losses were much wider than in the year-ago quarter, as production costs from the release of the Model 3 ramped up substantially. Revenue from the auto segment climbed 10% year over year, but Tesla said that it would likely take three months longer than it had previously expected for Model 3 production rates to reach the company's initial goal of 5,000 units per week. With Tesla saying that its battery module assembly line has been a key bottleneck, some investors worry that the company won't be able to handle the huge demand for its vehicles quickly enough to satisfy customers.
Source: Fool.com
