Tesla's Stock Plummets Amid Battery Warning and Tough October

Tesla shares dropped nearly 5% after Panasonic, a key supplier, reduced battery cell production in Japan, raising concerns about softening demand for electric vehicles (EVs). The decline comes after Tesla's Q3 earnings report, where CEO Elon Musk warned about the pressure of interest rates on EV prices and the challenges with the production of the Cybertruck. Since the earnings call, Tesla shares have fallen over 18%, resulting in short sellers making $3 billion. Bernstein expects lower margins and disappointing volumes for Tesla in fiscal 2024, with a price target of $150 on Tesla shares. The bearish sentiment is also affecting other parts of the EV market, with shares of ON Semiconductor, a chip supplier for EVs, down 20% after offering disappointing Q4 guidance.