Tesla stock had its worst week of the year.

This week, Tesla shares fell by as much as 15% after CEO Elon Musk made pessimistic comments about macroeconomic issues.

Shares of electric vehicle manufacturer Tesla closed this week at $211.9 per unit, equivalent to a 15% decrease. This was the stock's worst week of the year.

Prices fell because during the announcement of Tesla's third-quarter earnings earlier this week, CEO Elon Musk made pessimistic comments about the economy. He also indicated that further price reductions would still be necessary for the next few quarters.

In the third quarter, Tesla recorded $23.35 billion in revenue and $2.3 billion in profit, a 37% decrease compared to the same period last year and also the lowest in two years.

Tesla Model 3s manufactured at the Shanghai factory. Photo: Reuters — Tesla Model 3s manufactured at the Shanghai factory. Photo: *Reuters*

Musk has dampened investor expectations for the Cybertruck electric pickup truck. Tesla expects to begin deliveries later this year. However, he remains cautious about the potential profitability of the Cybertruck, as the product differs from previous Tesla models.

"The demand is huge. We've had over a million people pre-order. So, demand isn't the issue. But we have to make a car that's affordable for everyone. That's extremely difficult," he said.

He also declined to provide details about the "robotaxi" and the self-driving car technology they have been researching for years. Tesla has fallen behind other robotaxi developers such as Cruise, Waymo (USA), and Didi (China).

Musk also mentioned reducing the cost of electric vehicles for customers, while expressing concern about high interest rates. "Interest rates are too high right now. If they go up any higher, it will be very difficult for people to buy cars," Musk said.

During the report's announcement, Musk also made some optimistic comments, such as reassuring investors that Tesla would continue to "invest heavily in AI." This is a technology he believes "will be a huge game changer" and "has the potential to make Tesla the world's most valuable company with fully autonomous vehicles and humanoid robots."

However, the market was not as enthusiastic about the CEO's long-term vision statements as in the past. Even the most optimistic analysts offered cautious assessments after the company released its third-quarter financial results.

Colin Langan, an analyst at Wells Fargo, commented that Tesla investors "no longer have a rosy outlook." Adam Jonas of Morgan Stanley lowered his price target for Tesla stock from $400 to $380.

"We can't call this a growth stock when it's about to have its second consecutive year of declining earnings. We need to reconsider the long-term potential of the products and services Tesla offers," Jonas said.

Ha Thu (according to CNBC)

Source link