A Few Clouds
20°FA Few CloudsFull Forecast

Tesla falls most in 2 years on battery shortage

Published: Wednesday, Nov. 6, 2013 6:09 p.m. CST
Caption
(AP file photo)
Tesla CEO Elon Musk walks past the Tesla Model S after a news conference at the Tesla factory in Fremont, Calif. Musk on Tuesday blamed a shortage of lithium-ion battery cells for trouble meeting demand for Teslaís lone vehicle, the Model S. Cars that could have been sold in North America were diverted to Europe to satisfy waiting customers, Musk said on a conference call after releasing third-quarter earnings.

Electric car maker Tesla Motors has a battery problem. It doesn’t have enough of them.

That’s one reason the high-flying company’s shares fell 14.5 percent Wednesday, their sharpest drop in almost two years.

CEO Elon Musk on Tuesday blamed a shortage of lithium-ion battery cells for trouble meeting demand for Tesla’s lone vehicle, the Model S. Some cars that could have been sold in North America were diverted to Europe to satisfy waiting customers, Musk said on a conference call after Tesla released third-quarter earnings.

There won’t be any relief until next year, when a deal to get more batteries from supplier Panasonic kicks in, he said.

Shares of the Palo Alto, Calif., company dropped $25.65 to $151.16.

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Northwest Herald.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Reader Poll

If you had only one day to live, what would you do with it?
Learn to play the piano
Take up ice sculpting
Learn to speak French
Win over the love of a small town
Other