On Wednesday, major market players Tesla, Nike, and Humana experienced significant declines in their stock prices.
Tesla's Delivery Issues
Tesla’s third-quarter deliveries reached 462,890 vehicles, marking a 6.4% increase quarter-over-quarter. However, this figure slightly missed Wall Street expectations of 463,897 deliveries. The Model 3 and Model Y accounted for 439,975 of the total deliveries. Despite the growth, Tesla’s stock fell approximately 5%, trading at $245.77, down 4.75% for the day. The electric vehicle maker now faces the challenge of delivering a record 516,344 vehicles in Q4 to maintain its 2023 delivery levels, while battling increased competition in China and Europe.
Nike Withdraws Guidance Amid CEO Transition
Nike reported disappointing first-quarter results for fiscal year 2025, with revenue of $11.59 billion missing estimates of $11.65 billion. The company’s stock plummeted about 7% after the report, trading at $83.55, down 6.26% for the day. Nike Direct revenues fell 13% year-over-year to $4.7 billion, while wholesale revenues dropped 8% to $6.4 billion. In a surprising move, Nike withdrew its full-year guidance and postponed its upcoming investor day amid a CEO transition. Elliott Hill, a former Nike executive who retired in 2020, is set to replace John Donahoe as CEO on October 14, 2024.
Humana's Medicare Quality Ratings Drop
Humana faced the most severe stock decline among the three, with shares plummeting 16.03% to $234.65. The healthcare giant reported a significant decrease in its membership for 4-star Medicare plans and above, falling from 94% in the prior year to just 25% for 2025. This drastic reduction was primarily due to the downgrade of Humana’s H5216 contract from 4.5 stars to 3.5 stars, affecting approximately 45% of its Medicare Advantage customers. The decline in performance is expected to impact Humana’s quality bonus payments in 2026, leading to concerns about future revenue. Humana’s stock is now on track for its worst day since 2009, with year-to-date returns at -48.42% compared to the S&P 500’s +19.60%.
The stocks of Tesla, Nike, and Humana experienced notable declines, reflecting the current challenges they are facing. These events highlight the importance of understanding market conditions and their impact on stock valuations.