On Monday, Tesla shares crashed under pressure from the shrinking electric vehicle (EV) market despite the launch of the Cybertruck delivery page.
Tesla’s (TSLA) stock shed 4.79% to $197.36 per share on October 30, falling below the $200.00 resistance level. Furthermore, analysts forecast a 0.59% further slide down to $196.20 apiece in the coming session.
Since its third-quarter earnings report on October 18, the automaker’s share price lost 18.67% and $41.00 billion in market value. Tesla posted earnings per share (EPS) of $0.66, 9.59% below estimates, while its revenue of $23.35 billion was 3.11% lower than projections.
It was the first time the US EV giant missed earnings and revenue targets since the second quarter of 2019.
Tesla shareholders now face a new concern after Panasonic cut its battery production in Japan in September. Additionally, the multinational electronics company lowered its profit guidance by 15.00%, underscoring the global EV downturn.
Competitors Ford and General Motors have also announced plans to scale back on their investments in EV development and production.
Conversely, Tesla made significant investments in manufacturing plants, expecting a 50.00% annual growth in production for several more years. If the contraction in EV demand continues, the company will suffer losses from idle capacity and surplus inventory.
Analysts expect the electric car maker to be the next target of the United Auto Workers (UAW). The union recently reached tentative deals with General Motors, Ford, and Stellantis after over six weeks of labor strikes.
Cybertruck Page Goes Live on Tesla Website
Four years after its failed introduction that earned it the moniker Armor Glass, Tesla’s Cybertruck finally has an event page.
While containing no details about the electric pickup truck, the webpage emphasizes a November 30 delivery date for the vehicle.
To celebrate the delivery, Tesla will hold a limited-capacity in-person event at its gigafactory in Austin, Texas. In addition, shareholders can register for the random drawing that will highlight the occasion.
The Tesla Cybertruck uses unpainted flat stainless-steel sheets and bulletproof glass windows. Industry watchers expect three models with Environmental Protection Agency (EPA) range projections of 250.00 to 500.00 miles.
CEO Elon Musk revealed at the Cyber Rodeo Event in Texas that the Cybertruck will have no handles. The truck’s artificial intelligence (AI) can sense an individual’s location and determine whether it should open its doors for them.
