Tesla Inc. : Undermined by fears about China, Tesla shares remain stagnant on Wall Street

(BFM Bourse) – The title of the carmaker specializing in electrical components suffered from press reports reporting a production stoppage at the Shanghai plant.

While the reopening of China drives the markets forward on Tuesday, the Kingdom in the Middle East, on the contrary, once again turns off the Tesla action, whose stock market pain knows no truce from the confectioners.

On Wall Street, shares of the electric-specialist automaker fell 9% to $112.27 around 6:30 p.m. Paris time.

A set of press information about China abuses the title. that The Wall Street Journal reported on Monday that the group had suspended production at its Shanghai plant, the world’s largest, on Saturday, a day ahead of schedule. This interruption lasts eight days. The move comes as the group struggles with a wave of coronavirus cases among its employees.

Reuters, for its part, said Tesla would suspend production at the Shanghai site again in January, citing an internal schedule. The carmaker will produce next month for 17 days between January 3 and January 19 and halt production of electric vehicles from January 20 to January 31 for an extended Chinese New Year break, according to the plan revealed by the British agency.

A plunge of almost 70% since the start of the year

Contacted by the two Anglo-Saxon media, Tesla did not respond to requests for comment from Reuters and The Wall Street JournalI.

This press release comes amid growing questions about demand in China, a country where Tesla has had to agree to price cuts in the face of heightened competition from local players.

As such, Tesla shares could also be penalized by the lowering of the outlook for Chinese group NIO, which on Tuesday reduced its vehicle delivery targets for the fourth quarter of 2022.

Since the start of the year, Tesla stock is now down more than 68%. As well as fears about the prospects for the Chinese market, the group led by Elon Muksa was penalized by a wide range of factors, including fears about its ambitions in autonomous driving or the rise in interest rates. The group is also perceived by the market as a security victim of Elon Musk’s takeover of Twitter.

Julien Marion – ©2022 BFM Bourse

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