shares treaded near the lowest levels in five months Tuesday, extending their decline past 20% since the carmaker's third quarter earnings last week, amid a host of indicators that suggest a rough ride ahead for the global EV market.
Panasonic Holdings posted a third quarter loss, and lowered its full-year profit outlook, citing muted sales of Tesla's high-end Model S and Model X cars even amid the multi-level price cuts put in place in order to stoke demand and maintain market share.guidance miss . ON sells silicon carbide chips to EV makers and cited “increased risk to automotive demand due to high interest rates.
"I think we want to just get a sense for the global economy is like before we go full tilt on the Mexico factory," Musk told investors last week."If interest rates remain high or if they go even higher, it's that much harder for people to buy the car. They simply can't afford it."Tesla is also facing increasing competition in China, its most important market and the world's biggest EV space, as its state-backed rival BYD posted record third quarter profits of $1.
The stock is also down around 20% since it published its third quarter earnings on October 18, which showed profits down 37% from last year to 66 cents per share, even as revenues jumped 9.1% to $23.4 billion.