Tesla tumbled nearly 11% 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 cheaper, 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 $70 billion in market value, if losses hold. That would push its market capitalization loss for the month to about $200 billion.
“The Tesla headlines have essentially gone from bad to worse,” said one analyst, noting that the fourth-quarter revenue and profit were also below expectations.
