Tesla Inc (NASDAQ: TSLA) lost another 10% this morning following a Reuters report that the electric vehicles manufacturer plans on running a reduced production schedule next month at its facility in Shanghai.
Not a standard practice for Tesla Inc
That followed a different update from the news agency over the weekend that the multinational has suspended manufacturing at its Shanghai factory.
Citing its internal schedule, Reuters now says the EV company will run production between January 3rd and January 19th. Tesla will then suspend production for an extended Chinese New Year break.
It is noteworthy here that shutting down operations at year-end or for an extended Chinese New Year break is not a standard practice for Tesla Inc. The Nasdaq-listed firm is yet to make an official comment on the report.
For the year, Tesla stock is now down more than 70%; its worst performance ever – as demand-related concerns, macroeconomic challenges, and the Twitter noise continue to weigh on share price.
Analyst reiterates his bearish call on Tesla stock
Despite the unprecedented sell-off, Craig Irwin – Senior Research Analyst at Roth Capital Partners says the Tesla stock could tumble even further. This morning on CNBC’s “Squawk Box”, he said:
Some of the newer names are doing well. They have a more attractive growth rate than Tesla. So, there’s better place to put money in and people are liquidating their Tesla positions and putting money elsewhere.
Irwin currently has a price target of $85 on the Tesla stock that translates to another 25% downside from here.
From December 1st to December 25th, Tesla Inc faced a 28% annualised decline in its average daily retail sales in China – per the data from CMBI.
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