Tesla, which plunged nearly 10% the previous day, plunged nearly 4% today. This has caused Tesla to plunge 15% over the past week.
Tesla plunged 3.69% to $211.99 on the New York Stock Exchange on the 20th (local time) from the previous trading day. On the previous day, Tesla had plunged 9.30% to $220.11.
This is because Tesla announced performance that fell short of market expectations in its earnings announcement on the 18th.
Tesla announced its earnings report shortly after the market closed on the 18th that its adjusted earnings per share for the third quarter was 66 cents. This is below market expectations of 75 cents.
It reported sales of $23.2 billion. It also fell short of market estimates of $24.1 billion.
This is attributed to Tesla’s continued price cuts in the third quarter, which significantly reduced profit margins.
When Tesla announced such earnings, the investment bank’s target fell one after another. For example, Tesla analyst Dan Ives of Wedbush Securities lowered Tesla’s price target from $350 to $310 .
In addition, Tesla CEO Elon Musk’s remarks are also contributing to the stock price plunge
In a conference call after the earnings announcement, he said the U.S. economy is slowing significantly, suggesting that the establishment of a Mexican plant may be postponed.
In addition, he said that the Cybertruck will be released from November 30, but it will take a year to 18 months for the Cybertruck sector to make a profit.
In addition, the Wall Street Journal (WSJ) reported on the 17th that early adopters have already purchased electric vehicles and the U.S. is slowing down the purchase of electric vehicles, which seems to be affecting Tesla’s crash.