Tesla tumbled 7% on Thursday after CEO Elon Musk warned sales growth would slow this year despite price cuts that have already hurt margins and raised investor concerns at the world’s most valuable automaker.
Musk said growth would be “notably lower” as Tesla focuses on a next-generation electric vehicle to be made at its Texas factory in the second half of 2025, which is expected to spark the next boom in deliveries.
But his remarks fell flat with investors, with Tesla set to lose about $50 billion in market value, if premarket loss hold. Its stock was already down 16.4% this month, as of last close.
“The Tesla headlines have essentially gone from bad to worse,” said TD Cowen analysts, noting that the fourth-quarter revenue and profit were also below expectations.
Shares of other EV makers also fell, with Rivian Automotive Inc, Lucid Group and Fisker down between 1.2% and 2.4%.