The news of battery supplier Panasonic reducing production has caused another setback in Tesla's stock price.
On October 30th Eastern Time, the three major US stock indices collectively rose by over 1%. Large technology stocks such as Amazon rose overall, but Tesla bucked the trend and closed 4.81% lower, with its stock price falling below $200, reaching its lowest closing price since the end of May and closing at $197.36 per share.
On the news, Tesla's battery supplier Panasonic stated in its financial report released on Monday that demand in the North American automotive market has slowed down and battery production has been significantly reduced in the third quarter, resulting in Panasonic lowering its profit forecast. This has sparked concerns in the market about weak demand from Tesla.
Due to lower revenue and net profit than market expectations in the third quarter, Tesla's stock price has started to plummet significantly since the release of the third quarter report.
On October 18th local time, Tesla released its third quarter financial report, which showed that Tesla achieved revenue of $23.35 billion, a year-on-year increase of 9%, lower than analysts' expectations of $24.06 billion; Under the GAAP standard, the net profit was $1.853 billion, a year-on-year decrease of 44%, while the market expected it to be $2.231 billion; Adjusted earnings per share were $0.66, a year-on-year decrease of 37%, with analysts expecting $0.74.
Tesla CEO Elon Musk repeatedly emphasized his concerns about current interest rates during the earnings call. He bluntly stated that the automotive industry is cyclical, which is related to the economic environment. If interest rates are too high, it will affect consumers' willingness to buy cars.
According to Wind, from October 18th to October 30th, Tesla's stock price fell by over 22%, and its market value evaporated by over 182.7 billion US dollars (approximately 1.3 trillion RMB) in nine trading days; Compared to the high of $300 per share in July this year, the stock price has dropped by more than 30%, and its market value has shrunk by over $320 billion.
Market research firm Bernstein wrote in a report released on Monday that Tesla is expected to experience a "decline in profit margins and disappointing sales" in the 2024 fiscal year. Bernstein currently sets Tesla's target price at $150. Wall Street generally expects Tesla's car deliveries to reach 2.3 million units next year, but Bernstein has adjusted this estimate to 2.15 million units.