Ripples From Tesla's Woes Reach Asia's EV Suppliers After Q4 Results

Following Tesla Inc.’s TSLA disappointing fourth-quarter results, the stock prices of its Asian suppliers and electric vehicle (EV) competitors have taken a hit.

What Happened: As reported by CNBC, Tesla’s shares fell on Wednesday after the company’s fourth-quarter earnings missed expectations, with the company also warning of a slowdown in sales for the year. This has had a ripple effect on its Asian suppliers and EV competitors, with their stock prices also tumbling.

South Korean display manufacturer LG Display, a major supplier of car displays for Tesla’s Model 3, saw a drop of over 4%. Battery suppliers LG Energy Solution, Panasonic Holdings, and Samsung SDI also experienced declines. LGES registered a 3.8% loss, while Panasonic saw a dip of more than 2%, and Samsung SDI fell by 1.3%.

See Also: Apple’s Vision Pro Hits Pre-Order Jackpot, But Analyst Warns Of Demand Dip Ahead Based On Crucial Metric

Chinese EV manufacturer BYD BYDDF, which surpassed Tesla as the world’s top-selling EV maker in Q4 2023, saw its shares fall by approximately 2%. Other Asian EV competitors such as Nio NIO, Xpeng XPEV, and Li Auto LI also experienced significant losses on the Hang Seng index.

Why It Matters: Tesla’s Q4 results, released on Wednesday, showed a 3% year-over-year increase in revenue to $25.17 billion, which was below the expected $25.6 billion. Earnings per share for the quarter were 71 cents, compared to the anticipated 74 cents.

Despite the Q4 revenue miss, Tesla remains the top seller of EVs on an annual basis, delivering over 1.8 million vehicles in the year ending December 2023, compared to BYD’s figure of just under 1.6 million.

This news comes after Tesla invited Chinese fans to propose cities for the Cybertruck’s debut in China despite regulatory challenges that could hinder the electric pickup’s sales in the country.

Read Next: Elon Musk Tells Tim Cook He’s Looking Forward To ‘Trying’ Apple Vision Pro Hours After Taking A Swipe At The Mixed Reality Headset

Image via Shutterstock


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Posted In: AsiaEquitiesNewsMarketsGeneralAsiaLG DisplayLG Energy SolutionPanasonic HoldingsPooja RajkumariSamsung SDIStories That MatterTeslaTesla suppliers
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