Shares of Tesla Inc slumped on Thursday, with competitors also taking a hit after the electric vehicle maker warned that supply chain problems will last throughout 2022.
Tesla’s stock dropped 8 percent and was on track for its worst one-day percentage decline since early November after the company late on Wednesday posted a strong quarterly report but warned that component shortages would limit production this year.
Shares of several other electric vehicle makers also fell, with Rivian Automotive Inc last down 9 percent and set to close at its lowest level since the EV pickup truck maker’s November Wall Street debut.
Lucid Group Inc dropped 11 percent, Lordstown Motors Corp lost 8 percent and Nikola Corp fell more than 7 percent. U.S. shares of Chinese EV maker Xpeng Inc slumped almost 9 percent.
The slump in EV stocks was far worse than the Nasdaq’s midday 0.3 percent decline.
On Tesla’s quarterly conference call, Chief Executive Elon Musk said volume growth would comfortably exceed 50 percent this year despite the supply chain troubles. He also said Tesla in 2022 would focus on ramping up production rather than launching new products, such as an upcoming Cybertruck and a more affordable car.
Tesla’s stock has declined about 30 percent from its record high close on Nov. 4.
The median analyst price target is now $1,087, about 26 percent above Tesla’s price of $862.89.
