Tesla's tumble: This week in EVs
Investing.com — Here is your weekly Pro Recap of the past week's biggest headlines in the electric vehicle space: Tesla to exercise caution, see big share drop; OSHA proposes fines on GM battery plant.
As always, InvestingPro users got these headlines at lightning speed. Never miss another opportunity to secure an edge for your portfolio.
Tesla (NASDAQ:TSLA) shares tanked Thursday after the company reported a top- and bottom-line miss — earnings per share of $0.66 fell $0.07 short of consensus, and revenue of $23.35 billion was also lower than estimated — and after cautious commentary by CEO Elon Musk.
Musk's once-optimistic stance on Tesla as «recession-resilient» appeared to waver amid the significant revenue shortfall, its largest miss in over three years, even after the company had implemented substantial price reductions.
Expressing concern about rising borrowing costs and their potential effect on the accessibility of Tesla vehicles, Musk said that, despite substantial price cuts, the company would hold off on accelerating its scheduled expansion of the Mexican factory until there is more clarity regarding the state of the economy.
The new cautious approach looks to align with that of Detroit-based auto industry giants General Motors (NYSE:GM) and Ford (NYSE: NYSE:F), which have adopted a restrained strategy in expanding their EV production capacity, citing economic uncertainties and a possible decline in demand.
On Tuesday, for instance, GM announced its decision to postpone the production of the Chevrolet Silverado and GMC Sierra electric pickup trucks at a Michigan plant by a year, citing a stagnation in EV demand.
And Ford recently announced its intention to temporarily scale back one of the three shifts at the
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