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FILE - In this June 22, 2012 file photo shows a Tesla Model S driving outside the Tesla factory in Fremont, Calif. Shares of Tesla Motors are down another 5 percent as investors in the high-flying company assess the fallout from a fire in one of its $70,000 electric cars. (AP Photo/Paul Sakuma, file)

Tesla has been knocked from the top spot as 'most valuable US carmaker'


It hasn't been the best week for auto-manufacturer Tesla.

After three months as the U.S.' most valuable carmaker, Tesla was knocked from its top perch, and the market is beginning to notice.

The electric car company gained more than 50 percent of shares in the first half of the year, ultimately passing competitors General Motors and Ford in market cap. But those numbers didn't last long--plunging almost 15 percent alone this week. That translates to a lost market value of $8.7 billion, paving the way for GM to regain the top spot with a value of $52.67 billion.

Tesla's troubles date back to Monday when the company's CEO Elon Musk tweeted that the company anticipates production of 20,000 Model 3 cars per month in December, which was below previous estimates. Tesla also said that the first-half deliveries of the Model S sedan and Model X SUV totaled about 47,100--at the low end of the company's projections. On Thursday, shares dropped six percent, putting the company on track for its worst weekly percentage since 2016.

And US automaker Volvo took some of the limelight this week when it announced that it would be producing only electric and hybrid vehicles by 2019.

The Insurance Institute for Highway Safety (IIHS) assigned Tesla's Model S an acceptable rating on Thursday, but didn't award it the Top Safety Pick+ that the Lincoln Continental, Mercedes-Benz E-Class and Toyota Avalon received. THE IIHS noted a potential issue with the Model S's safety belt, which allowed the torso of crash dummies to move too far forward, plunging their heads into the steering wheel.

Despite Tesla's less than optimal week, the company won an Australian contract to install the world's biggest grid-scale battery, Reuters reported. Experts claim that it will be a litmus test for the sustainability and reliability of renewable energy at a large scale.

The Associated Press contributed to this report.

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