Shares of Tesla are trading lower for the second day in a row, with the stock on track to lose at least $76 billion in market cap. This low is fueled by headlines from Germany, where Tesla's Giga Berlin plant suffered an arson attack –– with no clear estimate of when the factory will come back online. Reports out of China also reveal that Tesla sales were lower than expected in the country.

Yahoo Finance Reporter Pras Subramanian joins the Live show to break down this latest development for Tesla and how it points to the "fracturing" of the "Magnificent Seven."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

- Shares of Tesla down again today, meanwhile, fueled by negative headlines coming out of China and Germany. Yahoo Finance's Pras Subramanian joins us now for the very latest. Pras.

PRAS SUBRAMANIAN: Yeah, Tesla shares bouncing around here. They were rebounding a little bit but now still at their lowest low since I think, May 2022. Two days in a row now of sliding here. Latest news is arson attack on the Berlin plant. A left wing group has accepted or admitted that they had caused a fire at a substation there that knocked out power to the plant.

Tesla says that the plant has been evacuated, power has been shut off. We don't know how many days they'll be shut off for so this could be a multi-day effect. That plant makes around 6,000 units a day, so could be a significant problem for them from a production point of view, and this follows yesterday's news of China shipments being lower. So more concern there for Tesla investors and analysts.

- Yeah, and that's the point, right, is that it just keeps piling on when it comes to the pullback that we've seen in Tesla shares. We've been talking about the fracturing of the Magnificent Seven, right, that it's not really seven that are outperforming anymore, but Tesla has been the one that has pulled back the most and the earliest compared with the others.

PRAS SUBRAMANIAN: I mean, so far down 27%, if not more, a little bit more, for Q1 so that's a significant drawdown for a company. I mean, we're talking billions upon billions of dollars. And the Mag Seven, what are we down to Mag, Mag Five now, is that the play now? Because--

- Or Mag One if you're just talking about NVIDIA, which is down today, but was the only one that was up yesterday.

PRAS SUBRAMANIAN: Yeah. So I think that we saw Goldman also today, knocking down their estimates for 2023, I'm sorry 2024 and 2025 because of the fact that they see price cuts continuing and margin compression also continuing. It's hard to see a bull case over the next couple of months, if not the next two years given where we are in the EV landscape, both here and also globally.

- It's so bad that Musk isn't even the richest man on the planet anymore. You see that?

PRAS SUBRAMANIAN: Bezos.

- Jeff Bezos.

PRAS SUBRAMANIAN: Yeah, yeah.

- That's how tough it is, Julie.

- That's how tough it is.

- It rough times.

- Rough, rough times. Thanks so much, Pras. Appreciate it.