Tesla’s stock dropped 5% today, here’s why

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Tesla’s stock dropped 5% today, here’s why
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There are a few reasons why the electric vehicle maker's stock tumbled.

stock fell to its lowest levels since May on Oct. 30, tumbling nearly 5% to below $200 per share. The decline follows a string of losses since Tesla reported disappointing quarterly earnings results on Oct. 18., electric vehicle sales rose nearly 50% in the third quarter, a rate that was far faster than total vehicle sales. As a result, electric vehicles represent about 8% of all vehicles sold in the United States, up from about 6% a year ago.

The growing risk associated with increasing EV competition is one reason why Tesla's shares fell on Monday. Battery supplier Panasonicreported a loss for the first time in three quarters, citing declining demand for batteries used in Model S and Model X. The potential headwinds are weighing on Wall Street analyst's optimism. The consensus full-year earnings per share forecast for 2024 has fallen to $3.75 from $4.17 over the past 90 days.

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