European shares ended lower for the second straight session on Thursday as earnings reports disappointed and automakers fell after weak quarterly results from U.S. EV-maker Tesla.

The pan-European STOXX 600 index fell 0.2%, with Nordic Semiconductor diving 17.6% to the bottom of the index after the chip company missed first-quarter sales expectations.

Frankfurt-listed shares in Sartorius slid 11.3% to their lowest level in more than a year-and-a-half after first-quarter sales at the lab supplies maker missed expectations and a key unit reported low orders.

European auto stocks dropped 3.7%, their worst one-day fall in five months.

Tesla Inc Chief Executive Elon Musk suggested the company will keep cutting prices to lift demand even after taking a big hit to first-quarter margins.

Musk’s signal triggered worries of a potential price war, hurting shares of carmakers on both sides of the Atlantic. Renault, Stellantis, Volkswagen , BMW and Mercedes fell between 3% and 8%. Tesla shares sank 9% in U.S. trading.

“The negative reaction to last night’s Tesla numbers along with a pledge to cut prices further has weighed on the European auto sector … over concerns that already thin margins will get even thinner, as prices get cut further,” said Michael Hewson, chief market analyst at CMC Markets UK.

Worries of more rate hikes by the European Central Bank (ECB) remained amid hawkish commentary from policymakers and as more readings continue to point towards stubborn inflation.

Minutes from the ECB’s March meeting showed central bankers cast doubt about what they called an “immaculate disinflation”, worrying that the ECB’s new economic forecasts about wages, growth and inflation were too benign.

ECB President Christine Lagarde said that euro zone inflation is too high and the ECB’s monetary policy “still has a bit of way to go” to bring inflation towards its 2% goal.

European stocks are set to end the month with gains, rebounding from March’s declines, as fears of a banking meltdown fade and investors look forward to more earnings. The STOXX 600 eyes its fifth straight week of gains.

Swiss elevator and escalator manufacturer Schindler rose 2.6% after it reported a 47% jump in first-quarter profit despite a challenging economic environment.

Melrose Industries Plc surged 21.7% to the top of the STOXX 600 after the conglomerate listed shares in the former automotive division of GKN on the London Stock Exchange as Dowlais.