Strong decline today for Tesla which marks a decline of 4.5% in the $ 980 area at the start of the day. The entire EV car segment pays duty in light of the widespread weakness of the Chinese auto market in March. According to reports from Reuters, citing the China Association of Automobile Manufacturers, total vehicle sales in China fell 11.7% in March after rising 18.7% in February; lockdowns in response to a wave of COVID-19 have limited car purchase intentions. Additionally, Tesla’s Shanghai Gigafactory was forced to close in late March following a citywide lockdown.
Tesla produced over 305,000 vehicles and delivered over 310,000 vehicles during the first quarter. Tesla’s Q1 accounts are expected on April 20 after the close of Wall Street. Since the beginning of the year, the stock market balance has been around -18%.
Toiling today are all the EV stocks with NIO which opened trading with drops in the order of 9% in the area of 18 dollars. The weekend announcement of the suspension of production due to disruptions in the supply chain linked to Covid-19 weighs heavily. Nio also said it is raising prices and suspending production as the latest wave of Covid has added to the supply chain challenges. The price increase affects the three SUVs – ES8, ES6 and EC6 and will amount to 10,000 yuan ($ 1,572) as of May 10. The company notes that commodity prices, especially battery prices, have risen “too much” this year with no downward trend in sight in the near term.