Tesla Stock Drops Again as Issues Start to Pile Up

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Tesla CEO Elon Musk.

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shares are lower again, adding to Friday’s significant decline, as investors weigh the impact of another tweet from CEO Elon Musk and focus on factors that might hurt the EV company’s earnings in 2022.

Sunday, Musk said that


(ticker: TSLA), as well as his privately held space company SpaceX, were seeing “significant recent inflation pressure in raw materials and logistics,” adding in a subsequent tweet, “and we are not alone.”

News of inflation for raw materials shouldn’t come as a shock to anyone. The price of a basket of metals, including cobalt and nickel, that go into making EV batteries, for instance, is up roughly 70% year to date. Those prices are available to anyone who chooses to look.

Still, the comment from Musk is making investors think about the potential impact on 2022 profit margins. Tesla stock was down 1.1% in premarket trading Monday, while futures on the

S&P 500
futures were up 0.3%. Given that futures on the

Dow Jones Industrial Average
had slipped 0.1% and

Nasdaq Composite
futures were off 0.3%, the move in Tesla stock isn’t too surprising.

But Tesla shares fell more than 5% on Friday, finishing the week down 5.1%. That drop after reports that Tesla was struggling to scale up the production of its new 4680 battery cells, with a diameter of 46 millimeters and a length of 80 millimeters, that will replace cells with a diameter of 21 and a length of 70.


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