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STORY: Mercedes Benz has capped a tough week for big automakers.

The German giant on Friday (July 25) cut profit forecasts, after weak sales and earnings in the second quarter.

Like rivals, it’s battling headwinds including lackluster demand for EVs, and mounting competition in China.

Supply bottlenecks and high interest rates also remain a drag.

Mercedes reported a 6% drop in sales for the first half, and a 17% plunge in sales of electric cars.

The company said it now had a “cautious view” on China, where it expects fierce competition, particularly for its cheaper products.

It was more hopeful about prospects in Europe, and said it saw “solid momentum” in the U.S..

Mercedes shares fell as much as 1.4% in early European trade following the news, but later recovered to trade flat.

The wary outlook added to a tough week for the industry.

Earlier, Japan’s Nissan reported a 99% plunge in its first quarter profit, after it was forced to do big discounts in the U.S..

Ford shares tumbled 13% after it missed forecasts, citing quality-related problems and competition in the EV market.

And Tesla stock sank too, after it also missed forecasts and saw profit margins sink to a five-year low.