On Wall Street sales on Tesla which is currently down by more than 4% thus finding itself at 186 dollars per share. Today’s negativity comes on the heels of a rumor (later denied) reported by Bloomberg that the company plans to reduce production at its Shanghai Gigafactory. Production cuts in China could reportedly take effect as early as this week and this move is estimated to reduce production by around 20% from full capacity.
According to the first press rumors, Tesla’s decision would have been taken after the necessary assessments on the demand of the Chinese domestic market; adding that the flexibility remains to ramp up production again should demand increase. We recall that China is still grappling with a new outbreak of Covid infections, a complex situation that is not easy to resolve.
However, earlier in a note, Tesla denied the rumors by declaring that it is not cutting car production at the Shanghai plant.
With today’s decline, Tesla stock brings the balance sheet since the beginning of the year to a loss of about 47%.