Tesla (TSLA) slumps 10% following Musk sales warning
Shares of electric automaker, Tesla (NASDAQ: TSLA) fell more than 10% on Thursday following CEO Elon Musk's caution about a slowdown in sales growth this year.
This comes despite previous price cuts that have impacted profit margins and raised concerns among investors in the world's most valuable automaker. Musk mentioned that growth would be "notably lower," attributing it to the company's focus on developing a more affordable next-generation electric vehicle, scheduled for production at its Texas factory in the latter half of 2025.
Despite these plans, investors were unresponsive, leading to a potential $50 billion reduction in Tesla's market value if the losses persist. As of the last close, the stock had already declined by 16.4% this month.
Shares of TSLA are down 10.89% in mid-day trading on Thursday.
By Michael Elkins | [email protected]