Tesla slips 25% in one week

Tesla has shed 25% this week through Thursday's close as the coronavirus outbreak weighs on the broader market.

On Thursday, Tesla slipped 13% when China vehicle registration data showed coronavirus has hurt demand, Bloomberg reported, citing China Automotive Information Net.

There could be further pain ahead of China's struggling automotive industry and Tesla, which had to shut its Shanghai Gigafactory in early February due to the virus outbreak.

Coronavirus has put an end to Tesla's rapid rally that sent shares up more than 100% in just a few months.

Shares of the automaker have lost 25% this week through Thursday's close as the market reels on fears that the coronavirus outbreak in China will hinder global growth. In the last six days, the S&P 500 and the Dow Jones Industrial Average have both lost more than 10%, the fastest slip into correction territory since the Great Depression.

That weekly loss includes a nearly 13% slip in Tesla stock on Thursday when China registration data showed that demand for the automaker's electric vehicles took a hit amid the coronavirus epidemic. Registrations of new Tesla cars fell 46% in January from the previous month, Bloomberg reported, citing China Automotive Information Net.

On Friday, Tesla continued to decline, falling as much as 10% in early trading in New York.

Tesla had been a standout among China's struggling automotive industry, posting solid registration data in previous months amid an economic slowdown and trade war tension. But the January data shows the US automaker is not exempt from the issues the industry faces.

There could be further trouble ahead, both for Tesla and China's automotive industry. In early February, Tesla had to shutter its new Shanghai Gigafactory for a week and a half due to a government-ordered closure motivated by the coronavirus.

Tesla said that Model 3 deliveries would likely be delayed due to the shutdown, but that it didn't expect the disruption to have a significant impact on its first-quarter financial results.

Tesla is up 62% year-to-date through Thursday's close.



by WooHoo Ireland


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