Al Root
Tesla stock started the week lower after finishing down on Friday, leaving shares with a three-week losing streak. The global economy and a potential chip shortage are weighing on investor sentiment.
Shares of the electric vehicle maker were down 1.2% at $391.97, while the S&P 500 and Dow Jones Industrial Average were off 0.9% and 1.1%, respectively.
Higher oil prices were weighing on investor sentiment. Benchmark crude prices topped $100 a barrel on Monday morning. Tesla vehicles don't use gas, but higher energy prices can sap consumers' spending power and weigh on the overall economy.
Semiconductors used in cars are another issue investors are facing, again. China's commerce ministry might impose export controls on chips made by Chinese subsidiaries of Dutch company Nexperia, according to Reuters, in a flare-up of conflict that first surfaced in late 2025.
Nexperia makes chips for power management, diodes, transistors, and simple integrated circuits that control parts of a car. Upsetting the supply could easily affect auto makers' ability to keep production lines running smoothly.
Tesla didn't immediately respond to a request for comment about its exposure to Nexperia chips.
It isn't the first time the auto industry has faced chip issues. Shortages coming out of the Covid pandemic roiled the automotive supply chain for months.
Coming into Monday trading, Tesla stock was down 12% year to date, but up 51% over the past 12 months. Investors have been balancing lower EV sales with Tesla's AI ambitions. Tesla sold about 1.6 million cars in 2025, marking a second consecutive year of decline. But the company launched its AI-trained robo-taxi service in Austin, Texas, in June. Tesla plans to expand the service to nine cities in the first half of 2026.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
March 09, 2026 10:11 ET (14:11 GMT)
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