EV - Tesla Stock Price Continues to Fall Due to Concerns About Demand in China
Tesla ( NASDAQ:TSLA )
When Reuters reported on Tuesday that Tesla ( NASDAQ:TSLA ) planned to operate a reduced production schedule in January at its Shanghai facility, investors panicked about the potential for lower demand in the world’s largest auto market. Tesla stock plunged 11.4% on Tuesday.
Tesla stock, which had its worst day in eight months and its worst day in more than two years, was the most significant drag on the benchmark S&P 500 index and the tech-heavy Nasdaq index. The stock sank to its lowest level in more than two years.
Since the beginning of October, its value has dropped by more than half, and investors are concerned that Chief Executive Elon Musk is spending too much time on Twitter. Musk is also concerned about selling his Tesla stock in the company that manufactures electric cars.
The most valuable carmaker in the world has reduced production at its facility in Shanghai in response to an increase in the number of COVID-19 illnesses reported in the nation.
Great Hill Capital Chairman Thomas Hayes stated, “There’s no doubt there are demand anxieties,” citing a delivery prediction drop from Chinese competitor Nio (NYSE:NIO) Inc in the significant sector. “There’s no question there are demand fears,”
Hayes also said that Tesla’s stock was facing a “perfect storm” because of rising interest rates, selling of tax losses, and share sales by certain fund...
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