• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

Tesla Stock Quietly Regained From Its SolarCity Drop Despite Autopilot Backlash

By
Katie Fehrenbacher
Katie Fehrenbacher
Down Arrow Button Icon
By
Katie Fehrenbacher
Katie Fehrenbacher
Down Arrow Button Icon
July 15, 2016, 3:53 PM ET
Photograph by Bloomberg via Getty Images

While Tesla has had a tough few weeks, marked by a fatal accident involving its Autopilot and a missed sales goal, the company’s stock has quietly regained a major drop after surprising investors last month with the news that it planned to buy sister solar company SolarCity.

The resurgence could indicate that investors are slowly becoming more comfortable with the $2.86 billion deal to buy the solar installer. It also could suggest that Tesla’s hard summer hasn’t yet done irreparable damage to Tesla’s brand or Tesla CEO Elon Musk’s goodwill with investors.

Three weeks ago, the electric car maker suddenly announced that it planned to buy SolarCity (SCTY) and create a company that would make and sell solar panels to generate energy, batteries to store energy, and cars to use battery-stored energy for transportation. A combined company using the Tesla (TSLA) brand would be able to cut costs, and sell all this energy tech under one roof, explained Musk to many a confused shareholder.

While Musk called the deal a “no-brainer,” and “blindingly obvious,” the market had another reaction.

Within hours, Tesla’s shares had plummeted in after hour trading by almost 10%, from $220.68 before the news hit on Tuesday morning, to $199.47 by the next Wednesday morning. By the following Monday, Tesla’s shares had dropped even more to a low of $187.87, a close to 15% drop from its share price before the deal was announced.

For more on Tesla and Autopilot, watch:

Investors had a variety of concerns about the deal, most of them financial in nature. SolarCity’s major $3.25 billion in debt was one issue, as well as its upcoming debt payments at the end of 2017. Musk’s 21% ownership and 22% ownership in Tesla and SolarCity, respectively—as well as that the companies’ boards are stocked with Musk’s friends and family—were also reason for concern.

The stock crash of course slashed billions of dollars off of Tesla’s market share. Immediately after the deal came to light, Tesla’s valuation lost significantly more than the $2.86 billion valuation of SolarCity. That loss was a major talking point from many analysts for why the deal didn’t make financial sense.

However, three weeks after the deal, Tesla’s shares have slowly and quietly regained all of that initial loss. On Friday afternoon, Tesla shares are trading at $220.07, slightly down from opening at $222.52 on Friday morning.

Get Data Sheet, Fortune’s technology newsletter.

That regain was despite news a few days later that there had been a fatal accident involving a Tesla car with Autopilot engaged and that the National Highway Traffic Safety Administration had opened a preliminary evaluation into Autopilot’s performance during the crash.

At the same time, Tesla also revealed on the fourth of July that it had missed its car shipment targets for the second quarter in a row and had to lower its 2016 year car shipment guidance slightly from a previous range of 80,000 to 90,000 down to 79,180 for the year. While the miss wasn’t all that much, it’s an unsettling trend for a company that recently decided to accelerate its goal to make 500,000 electric cars per year by 2018, two years earlier than it previously had planned.

Regardless of these two major issues, Tesla shares continued to climb back up. While they could easily fall again at any moment, it seems like investors are at least relaxing a bit from the initial shock and still seem to have some confidence in Musk’s sweeping and audacious vision of Tesla.

About the Author
By Katie Fehrenbacher
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

This community college student is America’s entrant in the Olympics of skilled trades. ‘I always wanted to be the first female to do something’
Future of Workthe future of work
This community college student is America’s entrant in the Olympics of skilled trades. ‘I always wanted to be the first female to do something’
By Mike Householder and The Associated PressMay 17, 2026
3 minutes ago
Some states blast utilities for ‘blatant corporate greed’ as profits rise while consumers revolt against AI-fueled electric bills
EnergyUtilities
Some states blast utilities for ‘blatant corporate greed’ as profits rise while consumers revolt against AI-fueled electric bills
By Marc Levy and The Associated PressMay 17, 2026
13 minutes ago
 Sen. Bill Cassidy, who voted to convict Trump in Jan. 6 impeachment, loses primary as president retains grip on GOP — ‘that’s what you get’
PoliticsRepublican Party
 Sen. Bill Cassidy, who voted to convict Trump in Jan. 6 impeachment, loses primary as president retains grip on GOP — ‘that’s what you get’
By Thomas Beaumont, Jack Brook, Stephen Smith and The Associated PressMay 17, 2026
29 minutes ago
murdochs
CommentaryMedia
OpenAI paid $100 million for a talk show. James Murdoch is eyeing an even bigger deal. The hot new asset class is humanity
By Lin CherryMay 17, 2026
2 hours ago
dennis
CommentaryAI agents
Freshworks CEO: why agile enterprises are winning the AI race — and what they did differently
By Dennis WoodsideMay 17, 2026
2 hours ago
A man with a headset sits at a desk in a call center.
EconomyAutomation
The AI boom hasn’t stopped U.S. companies from hiring cheap offshore labor, and overseas call center employment is still skyrocketing
By Sasha RogelbergMay 17, 2026
3 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
1 day ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
17 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
5 days ago
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
Future of Work
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
By Jake AngeloMay 16, 2026
1 day ago
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
Future of Work
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
By Jacqueline MunisMay 16, 2026
1 day ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
22 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.