Why Tesla Stock Tanked Today
Tesla (NASDAQ: TSLA) shares plunged as much as 7.4% Monday morning, dropping to their lowest level in almost 18 months. The move stemmed from two related reasons. As of 12:55 p.m. ET, the stock had recovered some ground, but was still down 3.3%.
The main cause of today's pessimism likely came from a pricing move reported by The Wall Street Journal. Tesla is dropping the price of its Model 3 and Model Y vehicles for Chinese customers. That's not the only news impacting Tesla shares today, but the other item is also about China.
Investors are concerned the price cut could mean the company is seeing waning demand in the important Chinese market. It comes just as Chinese President Xi Jinping secured a third term and stacked his government with loyalists that are considered less friendly to private companies.
Source Fool.com
