Tesla falls on Monday following reports of production cut for the December output of its Model Y in China.
Despite soaring higher by 0.08% to $194.86 apiece on Friday’s closing bell, the EV maker’s stock plunged by 1.73% to $191.50 per share in the latest trading session.
This fall came after the reports that it is planning to cut the production of the Model Y on the Shanghai gigafactory.
The facility, which typically creates around 85,00 cars monthly, is expected to reduce its production by more than 20%.
Although the automaker has a high inventory level in China, the uncertainty over the country’s Covid policies caused a slowing in demand.
Such circumstances pushed Tesla to change its outlook, ultimately resulting in a price cut.
According to sources, the output slashed will be imposed as soon as this week.
Before this, the EV maker also decreased the prices of its China-made cars in late October.
However, the decision of Tesla at that time caused a positive impact on its sales tally for November.
During that period, it recorded the Shanghai factory’s highest monthly sales since 2020, delivering 100,291 China-made EVs.
Meanwhile, Tesla plans to produce the Model 3’s revamped version in the country in the third quarter of 2023.
Musk Delivers First Tesla Truck
Musk finally rolled out the first Tesla truck five years after he revealed the plan.
The EV maker formally delivered the product to a factory in Sparks, Nevada, for its customer PepsiCo.
The event was live-streamed on Twitter, the CEO’s recently acquired social media platform.
Furthermore, the billionaire personally drove one of the three Tesla Semis inside the factory.
According to reports, the products were being made in the automaker’s battery manufacturing facility in Nevada.
For its features, Musk stated that it was similar to other Tesla vehicles, including regenerative braking and quick acceleration.
In addition, the billionaire added that the truck was in line with the company’s ultimate goal regarding sustainable energy.