Why did TSLA move on Jul 2, 2026?

Tesla's stock fell sharply on the day, with late-afternoon pressure driven by reports that the company is capping employee AI spending at $200 per week starting July 6 [2], [3]. This cost-cutting measure, first reported by The Information, signaled to investors that even AI-committed companies are facing budget constraints [2], [4], [5]. Additionally, the company announced that its three-row Model Y SUV is now available to U.S. customers [1].