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Tesla Stock Slips Lower On Report Of More Shanghai Factory Delays

by WOOWinvest
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Tesla Stock Slips Lower On Report Of More Shanghai Factory Delays

Updated at 7:56AM EST

Tesla (TSLA) – Get Tesla Inc report The stock pared earlier premarket gains on Monday after reports that the automaker would delay the return to full capacity at its Shanghai Gigafactory by at least a day.

Reuters reported on Monday that Tesla would not resume its full production of 2,600 vehicles a day at the group’s key Shanghai plant, the Giga 3, until Tuesday, as the company continued to work on staffing and production related to the city’s recent Covid-19 lockdown. Parts supply is struggling. The plant is expected to resume full-speed operation as early as today.

However, Shanghai’s rising rate of Covid-19 cases suggests Tesla may soon be operating at full capacity of 16,000 vehicles a week, as new infections in China’s largest city fell to a two-month low of 622 on Monday.

Tesla said last month that deliveries in the current quarter should be flat compared with the first three months of the year, even as its Shanghai Gigafactory — which produced about half of the group’s cars last year — closed for weeks at ‘Zero Covid’ crackdown in China. Full year deliveries are estimated at 1.47 million units.

The China Passenger Car Association (CPAC) said Tesla produced just 10,757 vehicles last month, selling just over 1,500, and had no exports, thanks to the 22-day shutdown of its Shanghai factory, which makes Models 3 sedan and Model Y crossover. Covid lockdown in the city. April sales were the lowest in two years, while March totaled 65,814 units.

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Tesla shares fell 1.5% in premarket trading to open at $653.85 a share, their lowest opening since last August.

Tesla closed Friday at a fresh 2022 low despite CEO Elon Musk’s promise that the clean-energy automaker’s fate was on his mind “24/7” as sensational headlines continued troubled the world’s richest man.

Musk said he only spent about 5% of his time on his planned $44 billion acquisition of Twitter, noting that most of his energy is focused on SpaceX and Tesla responsibilities as he looks to ease investor concerns He was too distracted by worry.

Tesla shares have fallen about 37% since Musk disclosed his 9.1% stake in Twitter on April 4, as investors have counted Musk’s margin loan, his sale of about $9 billion in Tesla Shares and the cost of the billionaire’s growing leadership portfolio, which includes space exploration group SpaceX, construction firm The Boring Company and neurotechnologist Neuralink Corp.

Musk also dismissed reports late Thursday that he sexually harassed a flight attendant on a private jet in 2016, calling it “completely untrue” and calling it a “politically motivated hit.” article”, adding that “there are many more stories.”

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