what happened
Shares of Tesla (NASDAQ: TSLA) was crushed Thursday. The share fell by more than 8% with the closing of the market.
Growth stocks were likely to decline due to a sharp sell-off in the overall market and news that the automaker’s Model 3 production line in Fremont, California, may have been temporarily disrupted.
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Approximately
The Model 3 production line at Tesla’s California plant will close on Thursday, Feb. 22 and March 7, according to a Bloomberg report. The business news website said the source is a person familiar with the matter. ‘Bloomberg speculates that the problem may be related to the supply chain, as there are severe snowstorms affecting land transport.
Tesla shares were also likely to be negatively impacted on Thursday by a sell-off in the overall market. The S&P 500 Index and Nasdaq Compound ends the day with 2.5% and 3.5% respectively.
Now what
A production break for Tesla’s Model 3 could have a significant impact on the company’s sales. Not only is Model 3 one of the company’s best-selling vehicles (besides the similar price Y), but the company manufactures more Model 3 and Y vehicles at its factory in California than anywhere else in the world.
Fortunately, however, Tesla is not as dependent on its factory in California as in the past. At the end of 2019, Tesla began manufacturing Model 3 vehicles at a factory in Shanghai. The carmaker added Model Y production to the factory last year.
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