Meta's market value surpasses Tesla, concerns over AI spending drag both stocks down

Against the backdrop of widespread pressure on large tech stocks, Meta Platforms' market value has recently surpassed that of Tesla once again. However, this ranking change has not boosted investor confidence, as both companies' stock prices have declined, reflecting market concerns over high AI spending and fundamental pressures on tech firms.

According to market data, despite Meta's stock price falling about 1.7% on the day, Tesla's decline was even greater, reaching approximately 2.3%, which allowed Meta to surpass Tesla in market value rankings and enter the global top ten by market capitalization. Entering July, the market values of Meta and Tesla fluctuated around $1.48 trillion, with Tesla briefly reaching $1.6 trillion in May before falling back. As of early July, Meta's market value was approximately $1.479 trillion, while Tesla's was about $1.477 trillion, with a difference of less than 0.2%.

Meta's stock price continues to decline, with core pressure stemming from massive AI spending. In June, Meta's stock price plummeted 11%, marking the largest monthly decline in two years, evaporating over $150 billion. The company plans to raise hundreds of billions of dollars through debt or equity financing for data center and GPU procurement, with capital expenditures expected to reach $35 billion to $40 billion by 2026. However, investors question whether such a large investment can yield clear returns, as Meta does not have a clear enterprise AI revenue path like Microsoft or Google. Additionally, Zuckerberg admitted to misjudgments in the AI strategy during an internal meeting, further undermining market confidence.

On Tesla's side, despite achieving a delivery volume of 480,126 vehicles in the second quarter, a year-on-year increase of 25%, and setting a record for the best second quarter in history, the stock price plummeted 7.49% after the delivery data was released. Investors are concerned that its growth relies on price cuts and promotions, and that its product line is too singular, with Model 3 and Model Y accounting for over 97%. In the Chinese market, competitors such as Xiaomi, Li Auto, and Huawei have launched attacks on Tesla's core price range, while Tesla's model update cycle is significantly slower than that of its Chinese rivals. By 2025, Tesla's global delivery volume is expected to be surpassed by BYD, fundamentally questioning Wall Street's growth narrative for the company.

The shared predicament of both companies reflects the deep contradictions currently facing the tech sector: when the path between AI capital investment and returns is still unclear, and traditional growth engines face competitive pressures, even if market capitalization rankings change, it cannot reverse the ongoing pressure on stock prices