Tesla shares hit by firm’s battery shortages

<p>Battery shortages have hit the share price of Tesla hard.</p>

The share price of Tesla collapsed yesterday (November 6th), after the firm revealed that it is suffering from a shortage of batteries.

Its stocks lost almost 15 per cent of their value after the company's founder Elon Musk told reporters that production is being affected as a result.

He revealed this situation is likely to continue until early next year, when a new supply deal with Panasonic is due to come into effect.

"We really are production-constrained, not demand-constrained. It doesn't make sense to do things to amplify demand if we can't meet that demand with production," said Mr Musk.

The inventor recently made waves when he revealed plans to build a superfast new mode of transport between San Francisco and Los Angeles in the US – dubbed the Hyperloop.

Mr Musk was commenting after Tesla revealed it made a net loss of $38 million (£23.62 million) in the July-to-September period.

Tesla's earnings also fell short of expectations and the share price of the firm has been dropping since reaching a record high in September.

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