Shares in Tesla fell nearly 11 percent on Thursday after CEO Elon Musk warned that sales growth would slow this year despite price cuts that have already hit margins and heightened investor concerns at the world’s most expensive automaker, News.ro reported from with reference to Reuters.

Musk said the increase would be “much smaller” as Tesla focuses on a cheaper next-generation electric car, which is scheduled to go into production at a plant in Texas in the second half of 2025, which is expected to trigger the next supply boom.

But his remarks did not impress investors, and Tesla could lose about $70 billion in market value if the losses continue.

That would push the market cap loss for January to about $200 billion.

The Tesla news essentially went from bad to worse,” TD Cowen analysts said, noting that fourth-quarter revenue and profit also came in below expectations.

Shares of other electric car makers also fell, with Rivian Automotive, Lucid Group and Fisker falling between 4.7% and 8.8%.

The electric car industry has faced slowing demand for more than a year, and Tesla’s price cuts are likely to put more pressure on startups and automakers like Ford.

“The problem for Tesla is that any significant attempt to increase sales from here on out will likely come at the cost of further reduced operating margins due to having to compete with BYD in China, as well as more competition elsewhere.” said Michael Hewson, chief market analyst at CMC Markets.

At least nine brokerages downgraded the stock, while seven upgraded the stock.

The company has an average hold rating with an average price target of $225 per unit, which is almost 9% above the stock’s last close.

Short sellers of Tesla stock have netted $3.45 billion this year, making it the most profitable short sale in the U.S., according to data and analytics firm Ortex.