General Motors reclaimed the title of most valuable American automaker as Tesla shares continued their plunge on Friday.
Tesla shares plummeted around 14 percent – the company’s biggest one-day loss in nearly five years – on worries about the electric carmaker’s future after U.S. securities regulators charged CEO Elon Musk with fraud.
Bloomberg data showed that GM ended Friday with a market cap just over $47.4 billion, as Tesla’s dipped to $45.2 billion.
Ford remained in third most valuable with a market cap of nearly $36.9 billion.
Tesla’s fall, along with a decline in Facebook following a new data breach, weighed on the Nasdaq composite Index, which was 0.1 percent to 8,046.35 at the closing bell.
The Dow Jones industrial average also gained 0.1 percent to 26,457.36, while the broad-based Standard & Poor’s 500 index was essentially flat at 2,913.93.
The U.S. Securities and Exchange Commission on Thursday charged Musk with securities fraud, alleging he misled investors last month in “false” tweets about taking the company private.
Tesla shares have been volatile for years, but even by its standards, August and September have been dramatic.
Barely a year ago, the stock reached an all-time high of $385 as investors grew optimistic about its lower-priced Model 3 sedan, the car that is seen as critical to Tesla’s goal of becoming a mass-market automaker. But by March, the company had lost about a third of its value as analysts worried about the difficulties it faced in achieving that goal as well as the company’s large and growing debt.
There were signs of progress in the months after that, and investors cheered in June after Musk said Tesla was about to hit its goal of making 5,000 Model 3s a week. At the beginning of August things looked even better when