Tesla Inc (NASDAQ:TSLA) shares dropped 4.8% and closed below US$200 for the first time in five months as investors’ concerns around a global slowdown in electric vehicle (EV) sales were reignited.
One factor weighing on the stock was Panasonic Corporation (NYSE:PC)'s slashing of its automotive battery production in Japan during the September quarter which it attributed to a decline in demand for high-end EVs.
It lowered its automotive battery production division’s annual forecast by 15%.
Meanwhile, chipmaker ON Semiconductor Corp (NASDAQ:ONNN), which sells silicon carbide chips to EV makers, outlined a weaker-than-expected fourth-quarter forecast, stating that it faces “increased risk to automotive demand due to high interest rates.”
Both updates built on ongoing concerns around waning EV demand which saw Tesla investors pull back on the stock.
Tesla shares finished Monday’s trading day at US$197.36. The stock is down 19.8% month-over-month but has gained 82.6% in the year to date.
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