Tesla Shares Fall to Fresh Two-Year Low Over China Production Pause
28 December 2022 - 03:53AM
Dow Jones News
By Will Feuer
Shares of Tesla Inc. fell about 9% in morning trading to its
lowest point in more than two years after the company suspended car
production at its Shanghai plant on Saturday.
The stock traded as low as $112.23 a share on Tuesday. Shares
are down about 68% this year and more than 41% lower this month, on
pace for the stock's worst month on record.
The stock is on pace for its lowest close since September
2020.
The decline comes after The Wall Street Journal reported that
Tesla extended a planned eight-day production halt at its Shanghai
plant, its largest worldwide factory by car output.
The decision to extend the work halt comes as Tesla faces a wave
of Covid-19 infections among its workers and suppliers, the Journal
reported, citing people familiar with the matter. The temporary
halt follows a recent slowdown in global demand for Tesla vehicles
amid higher interest rates.
Tesla is also facing increased competition from traditional auto
makers, which are growing their capacity to produce electric
vehicles.
The decline also comes after Chief Executive Elon Musk sold
billions in Tesla stock earlier this month. Mr. Musk has sold more
than $39 billion of Tesla stock since the company's market
capitalization peaked.
He has pointed to his Twitter Inc. involvement in explaining
some of those sales. The billionaire bought the social-media
company in a deal valued at $44 billion in October, with Twitter
taking on roughly $13 billion in debt in the process. He said he
wouldn't sell more Tesla shares through next year.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
December 27, 2022 11:38 ET (16:38 GMT)
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