Shares of (NASDAQ: TSLA) dropped below $200 today for the first time since late May. The stock plunged as much as 6% early on Monday and was still trading down 4.4% as of 12:24 p.m. ET. 

Investors have long given the electric vehicle (EV) leader a lofty market cap valuation. Even after Tesla shares have dropped 25% over the last three months, its price-to-earnings (P/E) ratio remains over 60. That's because investors see huge growth as the company builds new manufacturing plants. Production is expected to grow by about 50% annually for several more years. 

But that can only happen if there is demand for EVs in general and Tesla vehicles specifically. Today, along with a quarterly earnings release, the battery maker (and Tesla supplier and partner) Panasonic said it had decreased automotive battery production in its fiscal quarter, ended Sept. 30, due to a global slowdown in EV demand. It also lowered its annual profit guidance by 15% due to the change.

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Source Fool.com