Why Shares of Tesla Plunged 21.6% in March
Shares of electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) fell 21.6% in March, according to data provided by S&P Global Market Intelligence, and they haven't stopped dropping in April. The stock was down 8.4% in the first three trading days of this month.
The biggest change at Tesla is that the Fremont, California, factory was forced to shut down on March 23, and the Gigafactory in Nevada is cutting about three-quarters of its workforce. Without vehicles coming off production lines, Tesla doesn't have any revenue or margin, meaning cash burn will likely be high in mid-2020.
A Tesla Model S. Image source: Tesla.
Source Fool.com
