Tesla stock drops as Elon Musk's EV maker extends slowdown of Shanghai plant through January
- Tesla will run a reduced production schedule at its Shanghai plant from January 3 to January 19 and will halt output from January 20 to January 31, Reuters reported.
- Tesla had already moved up its planned eight-day production stoppage a day early.
Shares of Tesla fell 5% Tuesday as the company extended the slowdown of its Shanghai factory, which is its largest worldwide plant by output.
Tesla intends to run a reduced production schedule at its Shanghai plant from January 3 to January 19 and will halt output from January 20 to January 31 for an extended break for Chinese New Year, Reuters reported.
Earlier, Reuters reported that Tesla moved up its planned eight-day production stoppage a day early amid a surge in COVID-19 cases among workers and suppliers.
Still, Tesla has built up sufficient inventories of vehicles, the Wall Street Journal reported, and a production halt won't impact the company's ability to meet orders.
Over recent months, global demand for Teslas have slowed, and China's auto market in particular has dragged to a crawl. China's car sales in November dropped 9.2% compared to 2021, official data shows.
Meanwhile, Beijing has initiated a reopening of the economy and easing of lockdown policies, but COVID-19 infections have spiked across China, which have consequently weighed on Tesla. Earlier this year in April, the virus forced Tesla into similar manufacturing restrictions.
Elon Musk, for his part, has continued to face criticism and controversy with his newly acquired social media platform Twitter. The optics of his actions, analysts have warned, are bad for Tesla's stock price. This year, Tesla bears have made huge returns.
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