Tesla falls 15%, Alphabet drops 8% as AI spending concerns mount

Shares of Elon Musk-led Tesla came under heavy selling pressure in Thursday’s trade, July 23, plunging by 15% to around $319 apiece as the sell-off intensified after the electric vehicle maker reported weaker-than-expected quarterly earnings, hurt by a sharp rise in capital expenditure.

Alphabet, Google’s parent company, also tumbled 8% despite reporting stronger-than-expected quarterly revenue and profit, as investors focused on the company’s sharply higher artificial intelligence (AI) spending plans rather than its earnings beat.