Reuters Tesla tumbled over 12 on Thursday after CEO Elon Musk warned sales growth would slow this year despite price cuts that have already hurt margins at the world39;s most valuable automaker and fueled investor concerns about soft demand and Chinese competition.

Musk said on Wednesday that growth would be notably lower as Tesla focuses on a cheaper, nextgeneration electric vehicle to be made at its Texas factory in the second half of 2025, which is expected to spark the next boom in deliveries.

But he said ramping up production of the new model would be challenging because it would involve cuttingedge technologies.

Tesla39;s stock suffered its sharpest intraday percentage loss in more than a year, with 80 billion in market value wiped out on Thursday. That pushed its market capitalization loss for the month to about 210 billion.

The Tesla headlines have essentially gone from bad to worse, said TD Cowen analysts, noting that the fourthquarter revenue and profit were also below expectations.

Shares of other EV makers also fell, with Rivian Automotive Inc, Lucid Group and Fisker down between 4.7 and 8.8.

The EV industry has been grappling with a slowdown in demand for more than a year and the price cuts by Tesla will likely worsen the pressure on the startups and automakers such as Ford.

The problem for Tesla is any significant attempt to boost sales from here on will probably need to be achieved at the cost of further falls in operating margin, due to having to…