Shares of electric vehicle maker Tesla were falling on Thursday to an 8-month low amid an overall market slump and concerns of production stalls at the company’s Shanghai plant.
The company’s stock briefly dipped below the $700 level.
The EV maker has been under pressure recently after a Reuters report of a temporary production halt for some vehicles at the company’s gigafactory in China because of problems securing parts.
The Shanghai plant had already gone through delays of about three weeks in April due to Covid lockdowns in Shanghai.
Shares have also been feeling pressure as Bitcoin’s price has been dropping. Tesla purchased some Bitcoin last year to hold on its balance sheet.
The company has also put on hold plans to sell electric cars in India, abandoned a search for showroom space and reassigned some of its domestic team after failing to secure lower import taxes. This is according to three people familiar with the matter who spoke to Reuters.
Tesla had set itself a deadline of Feb. 1, the day India unveils its budget and announces tax changes, to see if its lobbying brought a result, the sources with knowledge of the company’s plan told Reuters.
As recently as January, Chief Executive Elon Musk had said Tesla was “still working through a lot of challenges with the government” in regard to sales in India.
Tesla shares are down 38% YTD.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.