Shares of electric-vehicle makers fell to fresh lows Thursday, pulled down by a big selloff in sector leader Tesla Inc.’s stock after a disappointing earnings report.
The Global X Autonomous & Electric Vehicle ETF
DRIV
dropped 0.9% in morning trading toward the lowest close since May 4, while the S&P 500 index
SPX
inched 0.1% lower. The ETF has now declined 19.0% over the past three months, while the S&P 500 has slipped 5.5%.
Tesla’s stock
TSLA,
tumbled 7.4% toward a two-month low after the EV giant missed third-quarter earnings expectations, and as Chief Executive Elon Musk tempered expectations for the much-anticipated Cybertruck. After slumped 4.8% on Wednesday ahead of earnings, the stock was on track for the biggest two-day decline — 11.9% — since it plunged 13% in the two days ended Dec. 27, 2022.
Read: Opinion: Tesla’s Cybertruck has Elon Musk sounding unusually cautious.
Investors worry that Tesla will continue to lower prices as it balances the positive effect on vehicle sales against a negative impact on margins.
“Tesla left open the door for more price cuts ahead as Musk discussed a challenging macro environment with high interest rates that has clearly created a Rubik’s Cube backdrop for Tesla to navigate with consumers,” Wedbush analyst Dan Ives wrote in a note to clients.
Among some of the more active EV maker stocks, Nikola Corp.’s
NKLA,
sank 6.9% toward a five-week low, Lucid Group Inc.’s
LCID,
lost 4.0% toward a record low, Mullen Automotive Inc.’s
MULN,
plummeted 23.1% toward a record low and Rivian Automotive Inc.’s
RIVN,
slid 3.7% toward a 3 1/2-month low.
Among Tesla’s China-based rivals, shares of Nio Inc.
NIO,
shed 2.0%, of XPeng Inc.
XPEV,
dropped 1.5%, and of Li Auto Inc.
LI,
were down 1.8%, with all headed toward four-month lows.
Elsewhere, Fisker Inc.’s stock
FSR,
declined 2.4, VinFast Auto Ltd. shares
VFS,
were down 4.0% toward a record low and Workhorse Group Inc.’s stock
WKHS,
took a 6.0% hit.
This post was originally published on Market Watch
