Tesla's 2-day slump has stock hitting lowest since May 2023
An arson attack near Tesla's Giga Berlin is the latest setback to hit the EV-maker.
Tesla (TSLA) shares slipped for a second straight day, with the stock hitting lows not seen since May 2023 as another spate of bad news hit the EV maker.
Early Tuesday morning Tesla’s Giga Berlin factory halted production and suffered a power outage following an arson attack at a power substation near the plant. According to Reuters, firefighters extinguished the fire, which did not spread to the factory. A Tesla spokesperson confirmed to Reuters that production had stopped and the site was evacuated.
Tesla closed down 3.9% on Tuesday, its lowest close since May 19, 2023. Tesla stock is down over 11% to start the week, and has fallen a steep 27.3% year to date.
A left-wing activist group claimed responsibility for the attack on Giga Berlin. "Stopping production of electric vehicles, rather than fossil fuel vehicles, ist extrem dumm," Tesla CEO Elon Musk said on X, using the German term for "extremely dumb." The attack on Tesla’s Giga Berlin comes after expansion plans for the factory came under heavy criticism, with the plan eventually being voted down.
Tesla’s Giga Berlin was producing around 6,000 vehicles a week at peak output, but will now likely shut down for a few days as power is restored to the plant.
Tuesday’s latest setback follows worries in one of Tesla’s biggest markets, China. On Monday, Tesla shares slipped over 7% as lackluster China shipments and new price cuts on the mainland hinted at more demand issues.
Tesla reported 60,365 vehicle shipments from its Giga Shanghai factory in February, according to preliminary data from China’s PCA (Passenger Car Association) via Bloomberg. The February shipments represent a 16% drop from a month ago, a 19% drop from a year ago, and the lowest shipment total since December 2022.
Tesla’s lowest shipment total in over a year is a concern for the company, which sees China as a huge growth market. Even China’s BYD, which surpassed Tesla in overall EV sales in Q4 and generally dominates the Chinese EV market, saw its February sales tumble to 122,311 units from 193,655, a 37% drop.
Goldman analyst Mark Delaney cut his 2023 and 2024 profit outlook for Tesla today, citing sinking margins due to price cuts, which he sees continuing over the next two years. Delaney wrote margin headwinds would likely be "offset by our positive view of Tesla's leadership position in the industry and long-term growth potential." Delaney has a $275 price target and Neutral rating on the stock.
Correction: A previous version of this article incorrectly stated that Tesla stock hit lows not seen since May 2022, instead of May 2023. We regret the error.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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