STMicroelectronics warned that its fourth-quarter sales would come in below expectations, hurt by slowing automotive demand and lower orders from a key electric vehicle customer, believed to be Tesla. The chipmaker forecast $3.28 billion in revenue, falling short of analysts’ $3.34 billion estimate.
The company also cut its 2025 capital expenditure plan to below $2 billion, citing weak demand for silicon carbide components used in EV power systems. CFO Lorenzo Grandi said capacity limits and lower-than-expected orders have forced the company to scale back investment.
Analysts said the muted outlook confirms that the semiconductor recovery remains sluggish, particularly in automotive and industrial markets. STMicro’s shares tumbled 7.9% in European trading, erasing gains from stronger third-quarter sales in imaging sensors and microcontrollers. The firm said its cost-reduction program remains on schedule.
