Tesla wipes $145 billion in valuation amid EV market concerns, dismal demand

livemint.com:

Not just numbers', Elon Musk goes emotional on Tesla earnings call; Analysts call him ‘little baby’ The downward trend began earlier this month when Tesla revised down its growth expectations in its third-quarter earnings call. This move was followed by pessimistic comments from various global automakers and Wall Street analysts. Recently, battery-maker Panasonic Holdings Corp.

and chipmaker ON Semiconductor Corp. also expressed concerns about the EV industry. These warnings have affected stocks in the US' automotive sector, which is already grappling with labor union negotiations on wage issues.

As a pure-play EV manufacturer with a substantial valuation, Tesla faces high stakes. Its share price, though expensive, partly hinges on its ability to maintain its dominant position in the EV market and its profit margins. Also Read: Tesla knew about Autopilot steering malfunction, trial reveals However, as EV demand levels off and Tesla's aggressive price cuts appear to lose their effectiveness in driving demand, investors are becoming increasingly concerned, leading to the sharp decline in the share price.

Despite the challenges, Tesla experienced a notable rebound during midday in New York. This resurgence followed the company's successful defense against claims that its Autopilot technology caused a fatal accident four years ago. As a result, Tesla's shares closed up 1.8 percent at $200.84 on Tuesday, October 31.