And Elon Musk, CEO of Tesla, indicated that the company will continue to reduce its prices to stimulate demand, even after its profit margins were severely damaged in the first quarter.
Musk’s comments raised fears of a potential price war, hurting auto stocks on both sides of the Atlantic.
stock movements
The European Stoxx 600 index fell 0.2 percent, with Nordic Semiconductor falling 17.6 percent to the bottom of the index, after the chip company’s first-quarter sales came in lower than expected.
The automakers index fell 3.7 percent, its biggest one-day loss in five months.
Renault, Stelantis, Volkswagen, BMW and Mercedes fell between 3 and 8 percent.
Tesla shares fell 9 percent in US trading.
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