Tesla’s share price fell again by more than 11% on Tuesday. The difficulties in China are probably greater than expected.
Tesla’s share price continues to fall and is now approaching the $100 mark. On Tuesday, the stock fell again by more than 11% and currently stands at $109.10. That’s over 70% down from the $400 it started the year. With the turn of the year, the worst month, quarter, and year in the company’s history could come to an end for the company of US billionaire Elon Musk, warns CNBC.
Tesla fell out of the list of the 10 largest US companies by market capitalization on Tuesday, adds The Wall Street Journal. Tesla is currently in 16th place here, and on Tuesday no stock in the 500 largest US companies was doing as badly as Teslas. Not only Musk’s escapades on Twitter are blamed for the recent crash.
Bigger troubles in China
The US news agency Reuters reported on Tuesday that Tesla will not be producing at full capacity at its Shanghai plant in January either. For the Chinese New Year, production is to be stopped completely again between January 20 and 31, after no electric cars are manufactured here in the week between Christmas and New Year. On the stock markets, this was apparently seen as another sign of difficulties at the car company, which had recently announced significant price cuts. Tesla’s daily sales in China at the end of December were down more than 28% from the same period last year, according to Reuters. In addition, the prices of Tesla’s vehicles are falling faster than those of other manufacturers.
The main reason for the veritable stock crash is likely to be Musk’s commitment to Twitter, the US billionaire who took over the social network at the end of October. Since then he has laid off large parts of the workforce there and caused sometimes chaotic conditions. Tesla investors have repeatedly spoken out, criticizing the fact that they are neglecting the fate of the car company too much. In order to finance the Twitter takeover, Musk has also sold large blocks of shares several times, most recently just a few days ago. He had repeatedly assured that the last time had been.