Tesla stock is lighter for $145 Billion in one of the worst weeks for EVs
The stock has dropped roughly 20% since third-quarter results on Oct. 18
Tesla Inc. shares are set to wipe out nearly one-fifth of their value in less than two weeks amid growing concerns that demand for electric cars is starting to weaken.
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@Tesla shares are set to wipe out nearly one-fifth of their value in less than two weeks amid growing concerns that demand for electric cars is starting to weaken, via Bloomberg#tesla #ev #crisis #inflation pic.twitter.com/eDImH6O3i9
— The_Journalbiz (@the_journalbiz) October 31, 2023
Bloomberg chart on Tesla
The retreat in the EV-maker’s stock price has erased about $145 billion from the company’s market capitalization.
The selloff started earlier this month when the electric-vehicle giant dialed back growth expectations during its third quarter earnings call. That was followed by grim commentary from several global automakers, as well as Wall Street analysts. This week, battery-maker Panasonic Holdings Corp. and chipmaker ON Semiconductor Corp. also sounded alarms for the EV industry.
The warnings have weighed on stocks across the US automotive sector, which has also been battling extensive negotiations with its labor unions over wages. Still, Tesla’s decline stands out: shares have sunk around 20% since the Oct. 18 report, compared to a 3.6% drop in the S&P 500 Index, and a more than 4% decline in the Nasdaq 100.
