Shares of semiconductor equipment maker Aehr Test Systems (NASDAQ: AEHR) were falling hard in Thursday trading, declining as much as 34.7% before recovering strongly to a still-unpleasant 11.7% decline as of 2:30 p.m. EST.

Aehr Test makes burn-in equipment used in the production of silicon carbide (SiC) chips, a material that is projected to be a big growth area thanks to future usage of silicon carbide chips in electric vehicles (EVs).

After posting solid fourth-quarter numbers and investors increasingly realizing that SiC will be a hot commodity in future years, Aehr's stock had appreciated a lot in 2023. However, at Tesla's (NASDAQ: TSLA) Investor Day last night, Tesla announced it had engineered a way to use far less SiC in future electric vehicle models in an effort to lower costs.

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Source Fool.com