Shares of electric vehicle pioneer Tesla, Inc. (NASDAQ:TSLA) are trading lower in premarket trading on Monday, extending the lean patch seen since last Wednesday.
With the company’s third-quarter results showing both top-and bottom-line misses amid further margin erosion, the management did not offer any clarity on the margin trajectory. Speaking on the earnings call, CEO Elon Musk instead chose to focus on the economy and its impact on the sales of its EVs. He also sounded a note of caution regarding the production ramp-up of the upcoming Cybertruck due to its radically different design.
Despite the string of price cuts Tesla implemented since the start of 2023, the company has not produced the intended effect of lifting volume.
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Monday, Tesla’s stock could also be reacting to the rising bond yields, which make equities, especially those of high p/E growth stocks, unattractive. Investors will likely prefer bonds, which is a relatively safer bet and is currently yielding higher vis-a-vis the return from equities.
In premarket trading, Tesla stock fell 1.03% to $209.80, according to Benzinga Pro data.
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