Tesla stock price
Tesla’s stock fell 7% yesterday as it was revealed that the company’s sales in China fell in April and that the electric car manufacturer faced a PR crisis. If stocks fall again today, again, it could reach its lowest point in the two months when Tesla crashed from $863 to $563 during the month. This has been a testing year so far for Elon Musk’s company, which has been under 11% since the end of 2020. Now is the best time as investors move away from high-value growth stocks and Tesla faces ongoing challenges in China. Analyze the current outlook for stocks.
Tesla Halts plans to purchase land in Shanghai
Elon Musk appeared to have a curry favor with China in March to secure Tesla’s market position in the long term. Recently, the NASDAQ registered company was exploring plans to expand its Shanghai plant and buy land to become a global export hub. However, according to a Reuters report, plans are no longer underway.
The Tesla plant in Shanghai is built to produce up to 500,000 vehicles each year, and currently manufactures Models Y and 3. Tesla is currently not aiming to significantly increase China’s production capacity, according to sources close to Reuters.
Sales fell in April, but Tesla made $3 billion in revenue in China in the first three months of the year, reaching 30% of its overall revenue.
The stock then fell 3.74% to $605.50 in pre-market trading on Tuesday, while stocks fell 6.44% in Monday’s high-tech off.
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China’s PR issue
Tesla is in the midst of a continuous and critical crisis of trust in Chinese automakers, a market that is considered essential to the company’s long-term growth.
In April, a woman climbed Tesla at a car show, protesting the brakes of cars that weren’t working in the car. The protest went viral on Chinese social networks and state media.
China’s state media has issued a firm denial of Tesla’s handling of women in its request for question compensation.
“The rog-worthy, overwhelming stance that the company exhibits in front of the public can seriously damage the Chinese market’s reputation and customer base,” state-backed Tabloid Global Times published another opinion piece stated in. Wednesday.
A significant portion of Tesla’s growth comes from China, and the company’s continued success depends on this remaining. As Elon Musk knows, if the Chinese or the government oppose Tesla, it will face major and immediate obstacles. Investors hope to pay attention to Tesla’s progress in the country to maintain the success of the meteor.
