Wolfspeed's Stock Takes a Hit Due to Mohawk Valley Facility Delays and Tesla SiC Cut Down
Wolfspeed's shares fell over 15% in pre-market trading after the semiconductor company issued weaker-than-expected guidance, citing issues at its Mohawk Valley facility. The delay at the facility stems from its inability to ramp its 200mm substrate capacity, leading to a lowered fiscal 2024 revenue guidance. Analysts are questioning whether silicon carbide might be "too hard to scale" given the continued missteps and whether Tesla was right to question its ability to meet the demands for electrification of the economy.