Tesla Stock broke a 3-day losing streak last week. Why it’s down again.


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New Tesla cars are on display at a Tesla dealership in Corte Madera, California.

Justin Sullivan / Getty Images

Tesla stock retreats again on Monday after breaking a three-day losing streak last Friday. The company’s new plant in Germany appears to be failing to produce when CEO Elon Musk hopes. This is not good news for the title, but the reported delay is several weeks.

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(ticker: TSLA) the stock was down 2.1% to $ 694.38 on Monday morning.

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futures contracts are both up about 0.6%.

German media Automobilwoche, which is part of the Automotive News, reported on Sunday that Tesla will need another six months for its so-called gigafactory, which is currently under construction in Berlin, to be operational. Tesla calls its new facilities gigafactories.

Tesla has two auto manufacturing plants and two more on the way. The company’s original plant is in Fremont, California, and was purchased from General Motors (GM) over ten years ago. Tesla’s Shanghai plant began production in early 2020 and recently began shipping a China-built Model Y crossover vehicle.

Tesla also has a gigafactory in Nevada that manufactures batteries. The two Tesla facilities under construction – aside from the one in Berlin, there is one in Austin, Texas – were due to start later in 2021.

“Texas and Berlin are progressing well, and we expect to have limited initial production from these plants this year and volume production from Texas and Berlin next year,” Musk said on the earnings conference call. of the company on April 26.

His comments dated back to about a week before the Automotive News report. It looks like limited German production could drop from late 2021 to early 2022.

The reasons for the delay are not immediately clear. Tesla did not respond to a request for comment on the German plant. There is a global semiconductor shortage that limits the production of cars and other products. There is also a potential for constraints on the battery manufacturing side. Battery makers are trying to ramp up production to keep up with all the new electric vehicles launched.

There are also reports of closer scrutiny by the authorities. construction practices. But it is not known which company is building the gigafactory. Tesla also did not respond to a request for comment on construction monitoring.

Ultimately, bullish Tesla investors are used to Musk being overly bullish on timelines and milestones. Bearish Tesla investors are used to the same thing. If vehicles start rolling on a German line in early 2022, the stock should not be too impacted.

Write to Al Root at [email protected]

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