In the wake of recent movements in the financial market, ETFs linked to Tesla (NASDAQ:TSLA) experienced significant losses over the course of the week. The stock price of the electric vehicle manufacturer plummeted by over 15.5% in the past five days, causing ETFs with exposure to Tesla to suffer.
The decline in Tesla's stock price was triggered by its Q3 earnings report, which revealed a 44% decrease in net profits compared to the same period last year. The figures for July-September 2023 stood at $1.9 billion, a significant drop from the $3.3 billion reported for the same months in 2022. Despite implementing an aggressive price reduction strategy aimed at making its vehicles more affordable and boosting demand, Tesla's profits suffered.
Adding to Tesla's challenges are delays to some high-profile projects. The Mexico Gigafactory, which was anticipated to be completed sooner, has been pushed back, as has the release of the highly anticipated Cybertruck targeting the lucrative North American market.
ETFs focused on themes related to the battery value-chain and future mobility sectors experienced significant losses in the aftermath of these developments, reporting weekly losses of 6.55% and 6.50% respectively.
Group Data: Future Mobility, Battery Value-Chain
