As Tesla Inc continues to struggle in getting its production at the China facility back to normalcy, the company shares took a dive once again on Tuesday.
The share had reached a 52-week high of $ 1243.49 on 4th November 2021. The shares have been continuously falling after its quarterly results are currently trading at $ 658.80. It is giving a negative return of $ 45.09 % on a YTD.
Due to the lockdown restrictions amidst the rising Covid-19 cases, Tesla Shanghai has struggled with its production schedules. This facility does not just serve as a base for the Chinese market, but units from here are also shipped to several European countries.
“With about 13,000 units of production per week and higher than average margins, any production loss at Shanghai is bound to have a significant impact on margins and earnings,” said Daiwa analyst Jairam Nathan, who has cut his price target for the product to $800 from $1,150.
Tesla was considered the ultimate growth stock, rising 50% last year. But when CEO Elon Musk announced his 9.2% stake in Twitter Inc the share closed at $1,145 on April 4. Since then, Musk has been highly engaged in an attempt to buy the social media platform. Tesla’s stock has lost almost half its market capitalization after the share dropped to $ 630.64 and Elon Musk’s net worth has also declined by approx $70 Billion i.e – 26% so far in 2022 according to Bloomberg.
