OPEC’s crude oil production dropped…
The International Energy Agency's World…
Tesla's stock fell hard on Thursday, losing more than 10% after the EV maker reported weak earnings and received disappointing comments from Tesla CEO Elon Musk.
In what Barron's referred to as a mini-disaster, Tesla's shares fell to $217.47 at 3:00 p.m. ET on Thursday—a 10.39% loss on the day. Tesla's market cap fell to just over $681 billion after the company's Q3 report was released, hich showed the car company failed to meet expectations for Q3 gross margin, profit, and revenue. The company's market cap on October 17 was $809 billion.
On the company's earnings call, CEO Elon Musk voiced concern that high interest rates were deterring car buyers and said that the company had become hesitant about its plans to build a factory in Mexico as it weighed the economic landscape. Tesla has had to slash prices for its EVs in recent months and has taken measures to cut costs, hurting its profit margins.
Musk said he was concerned that the high interest rates would continue to dissuade buyers from purchasing EVs.
"If the macroeconomic conditions are stormy, even the best ship is still going to have tough times," Musk said on the earnings call.
The earnings call was so downbeat that Tesla saw about $100B in market cap erased in just over a day.
For its Q3 report, Tesla reported $2.35 billion in revenue and $1.85 billion in profits—down from Q2. Profits were also down compared to the same quarter last year.
The company's Cybertruck is set for a November 30 launch from its Texas factory, but Musk warned that there were "enormous challenges" with scaling Cybertruck production and making it cashflow positive.
Tesla's stock began to fall on Wednesday but continued its fall on Thursday.
By Julianne Geiger for Oilprice.com
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.