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Tesla Inc. stock dropped nearly 3% on Friday as a boost from Chief Executive Elon Musk’s announcing a new CEO for Twitter Inc. was short-lived and as investors worried about a recall in China.
Tesla stock
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was on track to close at its lowest in a week and with its largest one-day percentage decrease in three weeks.
The stock jumped on Thursday after Musk tweeted that he had found a new top executive for Twitter. Musk confirmed his choice, former NBCUniversal ad executive Linda Yaccarino, on Friday.
Read more: Four things to know about new Twitter CEO Linda Yaccarino
Some Tesla investors long have expressed concerns that Musk “had grown distracted with his acquisition of Twitter,” Deutsche Bank analysts said in a note Friday.
See also: Rivian, Lucid and Fisker navigate a ‘treacherous road’ as they struggle to match Tesla’s success
Tempering that enthusiasm, however, news arrived that Tesla will recall 1.1 million cars sold or imported to China from January 2019 to April thanks to a brake defect, Chinese authorities said Friday.
Also on Friday, Tesla raised the prices of its Model S and Model X EVs. The Model S sedan’s base trim went up to $88,490, from $87,490 when Tesla last made adjustments to the model’s pricing in late April. The company similarly increased the price of the Model X luxury SUV by $1,000, now listed at $98,490 on Tesla’s website.
The company has kept the Model 3 sedan’s price unchanged at $40,240.
Tesla has tweaked its vehicle prices several times in recent months, mostly lowering them. In a call with analysts following Tesla’s first-quarter results, Musk said that the company’s view is “to keep making as many cars as we can,” adding that it was “a good time to increase our lead further.”
Tesla shares have lost about 31% in the past 12 months, contrasting with gains of about 4.6% for the S&P 500 index.
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The stock has overperformed the broader index so far this year, however, up 37% as compared with an advance of about 7% for the S&P.
