Why Tesla Shares Dropped Below $200 Monday
Tesla (NASDAQ: TSLA) is already dealing with COVID-19-related issues at its most productive facility in Shanghai, China. But other factors are weighing on the stock today, too. That has led to a decline in the shares this morning, with the stock reaching its lowest level in 18 months. As of 11:43 a.m. ET Monday, Tesla shares were down 5%.
Tesla's China plant recently was upgraded for the ability to produce an annual capacity of about 1.1 million vehicles. But last week, Barron's reported that the facility shipped 71,704 electric vehicles in October, down from the record 83,135 delivered the previous month. China's strict COVID-19 policies, which have resulted in lockdowns throughout the region, have negatively affected productivity.
That has also impacted consumer demand in China, and it might be partly why Tesla recently lowered prices for Chinese customers. But another factor could be weighing on Tesla shares today, too, and it doesn't have to do with the business itself.
Source Fool.com
