Tesla stock feels like it’s getting pounded from all sides. The possibility of production problems in Shanghai may have contributed to another drop in share price on Thursday morning.
Bloomberg reported on Thursday that electric vehicle manufacturer Tesla ( NASDAQ:TSLA ) was reducing shift lengths at its manufacturing in Shanghai from eleven and a half hours to nine and a half hours.
A request for Tesla to comment on the report still needs to be met with a response from the company.
Tesla Stock Performance
In premarket trading, Tesla stock had a decrease of 1.9%. Futures contracts for the S&P 500 index (SPX +0.75%) and the Dow Jones industrial average (DJIA +0.55%) are trading higher by 0.2% and 0.1%, respectively. Before trade on Thursday, the stock price had decreased for the previous three days in a row, resulting in a loss of approximately 11% over that span of time.
If the shift shortening is confirmed, this would indicate that output is decreasing. The information shared on Thursday followed allegations that surfaced earlier in the week stating that Tesla was planning to reduce the production of the Model Y by 20% in Shanghai for December. Tesla has refuted those rumors, although the specifics of its production timeline remain unknown.
A decrease in production may indicate an increase in the scarcity of parts due to China’s zero-Covid policy. It may indicate that there is an issue with the demand. It may be just a result of the usual monthly ups and downs, but it could also be related to manufacturing at Tesla’s new plant in Berlin. (The output of Shanghai is sold in China and Europe.)
Investors don’t know, and they despise being in uncertain positions.
In recent times, investors have had to worry about more than just the unpredictability of production. In addition, Tesla is providing customers in China and the United States with incentives to take possession of their vehicles before the end of the year. There may be a decline...
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