Tesla stock hits 8-month low as Shanghai Gigafactory adds drag
Tesla's (TSLA) stock briefly dipped below the $700 level on Thursday, touching an 8-month low, amid an overall market rout and concerns of production stalls at the electric vehicle's Shanghai plant.
Shares of the electric vehicle (EV) maker have 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 plant had already gone through delays of about three weeks in April due to Covid lockdowns in Shanghai.
The stock has also been under pressure after Bitcoin (BTC-USD) sharply declined this week. Tesla bought some of the cryptocurrency to hold on its balance sheet last year.
The EV maker is down 38% year-to-date, while the Nasdaq Composite (^iXIC) is down about 27%.
The markets have been selling off since the Federal Reserve began tightening monetary policy in a move to tame inflation.
Electric vehicle stocks have gotten clobbered during the recent sell-off. Rivian (RIVN) is down 75% year-to-date. On Thursday the EV startup's stock jumped 18% following its quarterly results. Shares were trading above $23 each, a far cry from their all-time high of $179 in November of last year.
Lucid (LCID), XPeng (XPEV) and NIO (NIO) are down more than 50% year-to-date.
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