Tesla shares hit by firm 8217 s battery shortages
Battery shortages have hit the share price of Tesla hard.
Battery shortages have hit the share price of Tesla hard.
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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