What's Going On With Tesla Stock?

Tesla Inc TSLA shares are trading lower Monday as investors continue to digest the company's worst quarterly results in years. New reports suggest Chinese competition is faring much better than Tesla. 

What To Know: Tesla shares have been under pressure since the EV maker reported disappointing financial results on Oct. 18. Tesla missed analyst estimates on both the top and bottom line and said it produced 430,488 vehicles in the third quarter, down from 479,700 in the second quarter. The stock closed nearly 10% lower immediately following the report and finished the week down approximately 15%.

The slide continued last week as analysts became increasingly cautious on the Elon Musk-led company. Multiple analysts noted that they were discouraged by Musk's attitude on the conference call. 

Reports from last week also suggested the U.S. Department of Justice (DOJ) is probing Tesla. The EV maker has reportedly received requests from the DOJ related to range advertising, personal benefits and personnel decisions. Tesla warned that the investigation could have a "material adverse impact" on its business. 

Increasing competition also appears to be weighing on Tesla shares. On Monday, Warren Buffett-backed BYD reported an 82.2% year-over-year increase in profits and a 36.5% jump in revenues, according to the South China Morning Post. 

The China-based EV maker highlighted its supply-chain advantage and improving brand influence. Analysts pointed to the company's attractive pricing as a strong competitive advantage. Tesla recently ended discounts on Model Y vehicles in China, which appears to be adding to concerns about future demand. 

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TSLA Price Action: Tesla shares were down 4.57% at $197.74 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Tesla.