Tesla Inc’s shares sank 8% on Thursday and dragged down other automakers after Chief Executive Elon Musk signalled the electric-vehicle maker will keep cutting prices to drum up demand even after taking a big hit to profitability.
Tesla shares were trading at $168 before the bell, with at least 15 analysts lowering their price targets on the stock. The company was set to lose nearly $50 billion in market value, if losses hold.
“Facing a volatile macroeconomic backdrop and weakening demand, Tesla continues to prioritize units over near-term profits,” said analysts at Canaccord Genuity.
