Chip stocks aren’t doing so hot on Thursday and investors can look to Elon Musk’s Tesla (NASDAQ:TSLA) for an explanation.
Tesla recently held its big investor day event and during it, Musk talked about the future of electric vehicle (EV) production at the company. He specifically noted that Tesla intends to reduce the amount of silicon carbide it uses.
It’s also worth noting that Musk’s comments at the event were focused on creating a more sustainable future for EVs and other tech. With that news, suppliers of silicon carbide are seeing their stocks drop today.
Let’s get into some of the chip stocks that are down today below!
Chip Stocks Down On Thursday
- Wolfspeed (NYSE:WOLF) stock is falling more than 10% following Musk’s comments today.
- ON Semiconductor (NASDAQ:ON) shares are dropping over 4% with the latest Tesla news.
- Several foreign chip stocks, including STMicroelectronics NV (NYSE:STM), Infineon Technologies AG (OTCMKTS:IFNNY), and Aixtron SE (OTCMKTS:AIXXF) are also falling.
It makes sense that these shares would fall alongside the latest Tesla news. Without as much need for the companies’ silicon carbide, demand seems likely to drop. If that happens, it could have a negative effect on these companies’ bottom lines.
It’s worth noting TSLA stock isn’t doing the best today, either. The company’s shares are down 6.2% as of Thursday morning.
There’s even more stock market news worth diving into below!
We’ve got all of the latest stock market coverage investors need to know about on Thursday! That includes everything moving shares of MP Materials (NYSE:MP), and WOLF stock, as well as the most recent Waymo news. All of that is ready at the following links!
More Thursday Stock Market News
- Tesla Sends MP Materials (MP) Stock Down 11%
- Tesla Sends Wolfspeed (WOLF) Stock Down 11%
- Waymo Layoffs 2023: What to Know About the Latest Waymo Job Cuts
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.