Shares fell about 5% on Monday, closing at $197.36, after updates from Panasonic, its battery cell supplier, revealed a production cut.
Since its third quarter earnings report on October 18, Tesla shares have fallen 18%.
Panasonic announced this week that it has reduced battery cell production in Japan for the period ending September 2023.
This suggests that demand for Tesla electric vehicles also decreased, especially cars that do not qualify for tax breaks and other incentives from government programs.
Panasonic battery cells have been used by Tesla for the X SUV and Model S.
According to Musk, interest rates put pressure on the company
Elon Musk warned shareholders that interest rates were putting pressure on the company to keep the price of its electric vehicles lower.
This could hinder consumers’ ability to purchase or lease electric vehicles in the future.
He also revealed that there are problems with the Cybertruck due to pricing: “We dug our own grave with it,” said Elon Musk. “It’s a great product, but financially it will take a year to 18 months before it contributes significantly to positive cash flow.”
Analysts maintain that Elon Musk’s company is expected to “experience lower margins and volume disappointments” in fiscal 2024.
Source: Ambito
