Tesla's stock closes at lowest in five months, as concerns about EV demand swirl

Shares of Tesla Inc. (TSLA) ended nearly 5% lower Monday, its lowest close since May 26, as the off-and-on downdraft since the company reported third-quarter results earlier this month continued. The drop was also the stock's largest one-day percentage decrease since Oct. 19, a day after the earnings report. Tesla at the time also sought to temper expectations about its newest model, the Cybertruck, and how long it would take for the company to reach volume production of the electric pickup truck. Also worrying investors on Monday was news that Japan's Panasonic (JP:6752), a Tesla battery partner, cut down on its domestic battery production, citing slower sales to Tesla. Confidence on a strong demand for EVs has been shaken in recent days, with Ford executives saying last week that EV owners are unwilling to pay a premium for EVs over internal combustion-engine cars. Tesla has gained 60% so far this year, however, compared with gains of around 9% for the S&P 500 index .

-Claudia Assis

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10-30-23 1715ET

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