Tesla shares slide on stopping Shanghai plan: Musk polls on Dogecoin
You’re here (TSLA) – Get a report Shares extended their recent declines on Tuesday following a report that the clean-energy automaker halted plans to expand its Shanghai gigafactory amid tensions with officials in Beijing.
Stocks were also put under pressure by data from China’s CPCA, which showed Tesla sold 25,845 cars in April, down 27.1% from the previous month.
Reuters reported on Tuesday that Tesla had considered expanding its operations in Shanghai – which currently has a production capacity of 500,000 cars per year – into a global export hub that would eventually send Model 3 sedans to the U.S. market.
Taxes on Chinese-made cars imported into the United States, first introduced by President Donald Trump, along with Tesla’s broader effort to appease Chinese officials amid a broader crackdown on tech companies and for collecting customer data, Reuters reported.
Tesla’s ongoing plans to launch a second overseas gigafactory in Berlin also face delays, a report by German weekly Automobilwoche said earlier this month following a series of setbacks related to permits and approvals from local and federal authorities.
Tesla shares, which have only posted gains in two of the last ten trading days, were marked 4.3% lower early in Tuesday to change hands at $ 602.00 each.
Founder and CEO Elon Musk has also reinserted himself into the cryptocurrency news cycle by asking his 54 million Twitter followers if Tesla should ‘accept Doge’ as a payment method, just three days after calling the Saturday Night Live “scramble” digital token, comments that sparked a price collapse that wiped out a third of its value.
Last month, Tesla said its new gigafactories – one in Berlin and the other in Austin – would likely go live later this year, but provided few details on the timing and pace of production, apart from Musk by informing investors. this 2021 production would be “limited”.
The update follows a stronger-than-expected first quarter earnings report that included revenue of $ 10.39 billion and street-beating earnings of 79 cents per share.
The automaker’s bottom line, however, was flattered by the sale of regulatory credits and bitcoin, which grossed the group just over $ 100 million.
In terms of vehicle sales, Tesla said it delivered 184,800 new cars in the three months ended in March, a record total that included production of 180,338 Model 3s and Ys.
China accounted for about 37.5% of that total, with the China Passenger Car Association (CPCA) posting the first quarter total of 69,280 units sold in the world’s largest car market after the launch of its Shanghai gigafactory in 2019.