On Thursday, shares of Tesla (NASDAQ:TSLA) Inc plunged 9 per cent, primarily due to rapid inflation and logistics challenges. Tesla shares, which lost 37 per cent so far this year, dropped 9 per cent to a 16-month low of USD 202.15 in early trade and were set for their worst day since June.

In its quarterly earnings report, the company pointed to challenges it faced on the logistics front for a potential miss in hitting the delivery growth target of 50% this year. Tesla Chief Executive Officer Elon Musk said that demand is a little more challenging than it would otherwise be. He reiterated that the company was highly confident of a record fourth quarter.

Tesla missed automotive gross margin expectations despite higher selling price of cars, as costs to ramp up production at its new factories in Berlin, Germany and Austin, Texas weighed.

As per media reports, higher prices, interest rates and consumer sentiment could risk Tesla’s delivery growth target of over 50 per cent. However, with a shift to electric vehicles gaining momentum globally, some analysts expect Tesla to be a big beneficiary.