The Thermal fatigue will cause the insulation to break down. The copper and Iron Loss will rise and the electromagnetic circuit will suffer shunt and eventual breakdown.
The permanent magnets will permanently demagnetize if they exceed a critical temperature which depends on the exact type and shape of the magnets. The current needed for a required torque will then increase leading to more heat.
All the answers above are certainly right. However, looking at your temperature of 423 Kelvin, it is not particularly high. There are a lot of insulation and magnets that can easily cope 150°C
The insulation and magnets may be available which can cope up with 150oC, but during the operation the temperature still rises. Whether hall sensors can withstand high temperature when it is integrated inside the motor?