Shares of Tesla Inc (TSLA.O) slid on Thursday, dragging down rivals after the leading electric car maker delayed releasing new vehicles until next year because of supply chain disruptions it said could last through this year.
Tesla’s stock dropped 8%, down 30% from its record high in November and set for its biggest one-day percentage fall since then, after the U.S. company’s strong quarterly report came with its supply chain warning.
Chief Executive Elon Musk told a quarterly conference call that Tesla would not launch new models like Cybertruck this year because it would dent volume growth in the face of supply chain headwinds that would be alleviated only next year.
He said Tesla would focus on ramping up the volume of existing models in 2022 by more than 50% rather than launching new ones.
The warning bodes ill for legacy automakers and startups, which have promised new electric vehicle (EV) models in the coming months.
“Tesla is even having trouble. Other EV firms are not going to be able to produce these vehicles as fast as they want,” said Curzio Research CEO Frank Curzio, adding that the volume growth of many new models could be pushed into 2023.
Shares of other EV makers also fell, outpacing the Nasdaq’s (.IXIC) slide. Rivian Automotive Inc (RIVN.O) dropped 9% and was on track to close at its lowest since the EV pickup truck maker’s market debut in November.
Lucid Group Inc (LCID.O) dropped 11%, Lordstown Motors Corp (RIDE.O) lost 8% and Nikola Corp (NKLA.O) fell more than 7%. U.S. shares of Chinese EV maker Xpeng Inc (9868.HK) slid by almost 9%.
Musk said Tesla was not working on a model that would sell for $25,000, although analysts have said it needed such a car to hit its volume targets.
At least six analysts raised their price targets after Tesla’s report. Some looked beyond supply chain issues and pointed to strong growth expectations.
The median analyst price target is now $1,087, which is about 26% above Tesla’s current price of $862.89.