Shares of Chinese EV-makers were battered on Thursday after reported disappointing third-quarter results on Wednesday where the company .
It was the first time Tesla, co-founded by Elon Musk, missed on both earnings and revenue since second-quarter 2019.
On Thursday morning, Hong Kong-listed shares of Chinese EV makers and fell 2.18% and 8.76% respectively. slid 3.14%, while and dropped 8.36% and 3.97% respectively in Hong Kong.
During Tesla's earnings call Wednesday, Musk cautioned that the Tesla Cybertruck – its battery electric full-size pickup truck model – would not deliver significant positive cashflow for 12 to 18 months after production begins.
Musk said the company is working to bring down the prices of its cars amid high interest rates, but it is as challenging as "Game of Thrones, but pennies."
"I'm worried about the high interest rate environment we're in," he said, adding that it will be much harder for consumers to purchase cars if interest rates were to increase further.
Tesla shares closed 4.78% lower on Wednesday. Other U.S.-based EV rivals and fell more than 9% on the same day. Lucid's stock dived a day earlier after it reported third quarter EV deliveries that disappointed the Street.
In the first six months of the year, EV manufacturer, contributing 21% of global sales of EVs, according to research firm Canalys. Tesla trailed behind at second place with 15% market share while German carmaker held 7% market share in third place.
EV players are under pressure from a price war to gain market share amid intense competition.
Tesla conducted multiple rounds of price cuts over the last few months, especially in China – the world's biggest EV market. Domestic rivals BYD, Nio, Li Auto and Xpeng have also joined Tesla in lowering the starting prices for some of their EV models.
— CNBC's Lora Kolodny contributed to this report.
