Covid-19 causes Tesla stock to nosedive due to close of factories

Covid-19 causes Tesla stock to nosedive due to close of factories

- The outbreak of the coronavirus has led to a wipeout of Tesla's gains in 2020 and left the market panic-stricken

- The coronavirus outbreak led to a shutdown of Tesla's Shanghai factory for two weeks and its California factory also faces similar danger

- Registration for the company's cars fell by 46% in January compared to the previous month

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Briefly.co.za has learned that the coronavirus has led to a wipeout of all gains recorded by Tesla Inc. in 2020.

On Wednesday, the company started trading with a 9% loss, priced at $390 per share, and since then has recorded more losses in a panic-stricken market.

Tesla has lost almost 7% from the end of the year 2019.

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The coronavirus outbreak consequently led to the closure of Tesla’s Gigafactory in Shanghai for two weeks following a directive from the government as China raced to contain the virus.

Business Insider.com reports that plans are also in place to close the company’s factory in Fremont, California, in the United States of America.

Tesla’s challenges come at a time when global markets are experiencing the effects of the coronavirus.

The company’s decision to install old chips in its Model 3 cars did little to help its brand as car buyers plotted a lawsuit.

Bloomberg also reports that the registration of Tesla’s cars fell by 46% in January 2020, as compared to the previous month.

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Source: Briefly.co.za

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