Shares of electric-vehicle makers experienced a widespread decline on Thursday after disappointing earnings from Tesla Inc. put a damper on the sector.
The Global X Autonomous & Electric Vehicle ETF (DRIV) saw a 0.6% slump prior to market open, while futures for the S&P 500 index (ES00) eased 0.2%.
Tesla’s stock (TSLA) took a significant 6.6% dive in premarket trading, hitting a two-month low. The EV giant failed to meet third-quarter earnings expectations, and CEO Elon Musk tempered expectations for the highly anticipated Cybertruck.
Investors are concerned that Tesla may continue to lower prices as it balances the positive impact on vehicle sales with a potential negative impact on margins.
Wedbush analyst Dan Ives noted in a client advisory that Tesla’s discussion of a challenging macro environment, including high interest rates, suggests the company will likely implement more price cuts in the future.
Several other active EV maker stocks also experienced declines. Nikola Corp. (NKLA) fell 0.5% to a five-week low, Lucid Group Inc. (LCID) lost 2.2% and hit a record low, Mullen Automotive Inc. (MULN) dropped 1.6% and reached a record low, and Rivian Automotive Inc. (RIVN) slid down 1.7% towards a four-month low.
China-based rivals of Tesla also saw declines. Nio Inc. (NIO) shed 2.3%, XPeng Inc. (XPEV) dropped 3.5%, and Li Auto Inc. (LI) lost 3.1%, with all heading towards four-month lows.
In contrast, Fisker Inc.’s stock (FSR) declined 1.2%, VinFast Auto Ltd. shares (VFS) were down 1.7%, and Workhorse Group Inc.’s stock (WKHS) rose against the trend with a 4.0% increase.
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