Company Reports – Page 7

Tesla Cuts Prices in China in Sign of Slowing Demand

Shares of the company slumped as investors worried about increasing competition.

The electric carmaker is growing fast but investors are worried that sales are starting to slow because of higher prices and interest rates.

The automaker’s performance indicates that the global semiconductor shortage is beginning to ease.

The increase from the same period last year comes as competition grows among automakers producing electric vehicles in the United States.

The maker of electric pickup trucks, vans and sport-utility vehicles increased its production forecast for the year, but only slightly.

The maker of luxury electric cars that hopes to challenge Tesla struggled to get parts and build vehicles in the second quarter.

The automaker reaffirmed its forecast for earnings for the full year.

Tesla said it expected capital expenditures to be $6 billion to $8 billion in 2022, up from an April forecast of $5 billion to $7 billion.

The world’s largest maker of electric cars struggled with production problems in China.

A scarcity of semiconductors and raw materials held back production, but buyers remain enthusiastic.