Reports claim that a production halt at the Shanghai plant is the reason for the automotive company’s dreadful market fall. The week-long production halt came with the surge of Covid cases within its Chinese working force.
Elon Musk’s American multinational automotive company Tesla’s stock dropped by 11 per cent on Tuesday. This is the first time in over two years that the electric car company has hit the worst stock margin.
Reports claimed that a production halt at the Shanghai plant is the reason for the automotive company’s dreadful market fall. The week-long production halt came with the surge of covid cases within its Chinese working force.
As per reports, Tesla’s Shanghai plant is expected to resume production in January. The fixed date to start production is 03 to 19 January 2023, a 17 days production run with an extended halt from 20 to 31 January 2023 for the Chinese New Year break.
Meanwhile, Tesla’s stock fall suggests a 73 per cent fall from its recorded high-time stocks in the month of November 2021. The downfall of stock in 2022 is 69 per cent which is more than a double decline in the Nasdaq.
The other major automobiles in the downfall league are Ford which is down by 46 per cent and General Motors with a 43 per cent downfall. Since its initial public offering, Tesla has dropped only in one year, 2016 which was again an 11 per cent drop.
According to a mid-December filings report, Musk sold about 22 million shares of Tesla. A USD 3.6 billion chunk sale that doubts Tesla’s future. Earlier this year, Musk addressed his millions of social media followers, “the future sale of TSLA is not planned after 28 April 2022”.
In his latest tweet on 22 December 2022, the automotive owner stated he has no future plans to sell stocks over the period of 18 to 24 months. For now, looking at the December plunge, Tesla has faced by far its worst market fall of 44 per cent, it had never fallen more than 25 per cent before.