Tesla falls as Elon Musk warns about demand after 3rd-quarter revenue misses forecasts

• Shares of Tesla fell Thursday morning on demand concerns voiced by Elon Musk.
• The company reported third quarter earnings a day earlier, with revenue coming in short of forecasts.

Tesla stock fell Thursday morning, a day after the company reported softer than expected third quarter earnings while chief executive Elon Musk noted demand concerns.

Shares were down 5.75% shortly after the opening bell, after being down as much as 6.6%. Tesla's third quarter sales were $21.5 billion, below analyst forecasts of $22.1 billion.

Tesla told investors Wednesday that the company would fall short of its goal of 50% growth in vehicle deliveries, citing problems with getting cars from assembly to customers. Musk also told analysts that economic downturns in China and Europe were weighing on orders, as well as monetary tightening from the Federal Reserve.

The issue largely stems from steep costs of getting cars onto delivery vehicles like ships, trains and trucks, while the majority of the company's output came down to the final weeks of the third quarter. Tesla ultimately produced more than 22,000 vehicles that it actually delivered.

Musk also cautioned that "demand is a little harder than it would otherwise be," but remained upbeat on the fourth quarter. Tesla stock is down nearly 41% from the start of 2022.