Stock Market

Tesla shares hit the lowest since July 2020

Shares of electric car maker Tesla fell 11.4% to $109.1 in trading on the NASDAQ on Tuesday, December 27. Tesla shares hit their lowest close since August 2020.

On Wednesday, the sales continued; in the preliminary trading, the paper fell to $104.22, at least since July 22, 2020. By the time this material was published, the shares had recovered slightly and reached $112.7 (+3.3%).

The drop in Tesla’s capitalization came amid a report from The Wall Street Journal that the electric car maker will extend the suspension of production at a plant in Shanghai due to an outbreak of COVID-19 infections among employees. It is Tesla’s largest car manufacturing plant in the world, accounting for more than half of production in the first three quarters of 2022.

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According to Reuters sources, Tesla plans to reduce production in Shanghai in January 2023 – the plant will operate for 17 days in January, from January 3 to 19, and stop the production of electric vehicles from January 20 to 31 due to the Chinese New Year.

Like other automakers, Tesla has also experienced a drop in demand this year in China, the world’s largest auto market, the agency said. Earlier this month, Tesla offered additional perks for buyers purchasing cars in December. The company has reduced the price of Model 3 and Model Y cars in China by up to 9% in addition to subsidizing insurance costs.

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