The investment community loves to group certain stocks into various buckets. In recent years, the "Magnificent Seven" have been viewed as an elite collection of businesses because they dominate their end markets and command massive valuations.
But they don't always win. Which of these tech stocks has been the worst performer of 2026?
Image source: The Motley Fool.
Tesla (TSLA +4.65%) has been losing the race. As of Sept. 29, its shares have tumbled 22% this year. However, they have still soared 2,460% over the past decade, offering a wildly successful return for long-term investors.
The company's revenue surged 21% year over year through the first six months of 2026 (ended June 30), with automotive sales rising 24%. Strong growth like this should be viewed favorably.
But profitability has taken a hit. Its operating margin contracted from 4.1% in Q2 2025 to 1.4% last quarter. Research and development expenses were up 49% year over year, while selling, general, and administrative costs jumped 45%.
NASDAQ: TSLA
Key Data Points
This electric vehicle stock's valuation isn't rooted in reality, as it trades at a price-to-earnings ratio of 327. Investors clearly still value the business highly. However, an inflated multiple adds meaningful downside risk.
And Tesla continues to test the patience of its shareholders regarding Robotaxi expansion and Optimus production. The company's future depends on these ambitious projects rapidly scaling and generating significant financial returns. Eventually, the stock price's movements should reflect fundamentals more and the narrative less.
