Tesla's (NASDAQ: TSLA) factory in Shanghai, China is its most productive plant. It has been upgraded to have an annual production capacity of about 1.1 million units. So it's not a surprise to see investors moving the stock lower when there are clouds on the horizon in China. As of 1 p.m. ET, Tesla shares were near the day's lows, down 2.6%. 

That is likely because of another resurgence of COVID-19 cases and restrictions in China. Tesla generates approximately one-fourth of its sales from its China plant. So when news surfaced that Chinese electric vehicle maker Nio has temporarily suspended operations at two of its plants due to local virus-related restrictions, some investors are betting it will also impact Tesla.  

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Source Fool.com