Why Tesla Stock Is Sinking Over 3% Premarket Today
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) shares fell over 3% in premarket trading due to rumors of production cuts at its Giga Shanghai facility, specifically for Model Y and Model 3 EVs. The company reportedly shifted from a 6.5-day workweek to a five-day schedule, raising concerns about slowing demand in China, a key market. Tesla's insurance registrations in China dropped 6.8% week-over-week, and its wholesale sales in the first two months of 2024 declined by 8% year-over-year. This news comes as Tesla is about to announce its first-quarter sales, with analysts fearing the company might barely surpass its first-quarter delivery figure from the previous year.
March 22, 2024 | 12:04 pm
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Tesla's stock fell over 3% in premarket trading due to rumors of production cuts in China, potentially indicating slowing demand for its vehicles in a crucial market.
The premarket drop in Tesla's stock price is directly linked to rumors of production cuts at its Giga Shanghai facility, which could signal slowing demand in China. This is particularly concerning as China is a significant market for Tesla, and any indication of reduced demand there could impact the company's overall performance. The timing is critical as Tesla is about to announce its first-quarter sales, and investors are likely to be sensitive to any signs that could predict a disappointing report.
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