Updated at 7:46 am EST
tesla (TSLA) – Get a free report Shares fell early Friday following another round of electric vehicle price cuts in China and reports that it would suspend production at its new Berlin factory following supply disruptions related to attacks on ships in the Red Sea.
Tesla confirmed a Reuters report that its Berlin factory, opened last year, would suspend operations from Jan. 29 to Feb. 11 as key components ship through the Red Sea, which flows into the Canal. Suez, remain targets of the Houthi rebels in Yemen. .
The United States and the United Kingdom carried out coordinated military strikes against Iranian-backed rebels on Friday, and President Joe Biden said in a statement that he will not tolerate “attacks on our personnel or allow hostile actors to endanger freedom of navigation.” “.
“Armed conflicts in the Red Sea and the resulting changes in shipping routes between Europe and Asia via the Cape of Good Hope also have an impact on production at Gruenheide,” Tesla said in a statement. “Significantly longer transportation times are creating a gap in supply chains.”
Tesla is also cutting the price of its new Model 3 sedan in China by about 6%, to 245,900 yuan ($34,600), with a nearly 3% reduction in the price of its Model Y electric sport utility vehicle.
Tesla is also cutting the price of its new Model 3 sedan in China by about 6%, to 245,900 yuan ($34,600), with a nearly 3% reduction in the price of its Model Y electric sport utility vehicle.
Morgan Stanley analysts said the new round of cuts could trigger a new round of competition for price leadership in the China market, as “major OEMs could try to undercut their competitors to secure as many orders.” as possible, since their order books are low given the year-end sales momentum.”
Tesla shares fell 3.2% in premarket trading to indicate a Friday opening price of $219.98 each, a move that would extend the stock's six-month slide to around $19. 1%.
Earlier this month, Tesla reported that it delivered a record 484,507 new cars during the three months ended in December. This represented an increase of 19.6% compared to the same period of the previous year and 11.4% more than the figure of 435,059 people reached during the three months ending in September.
The full-year figure was marked at 1.81 million cars, an increase of 38% on the previous year and beating the group's official forecast of 1.8 million, but falling short of the chief executive's target of 2 million. Elon Musk.
Tesla will report fourth-quarter results after the close of business on January 24.
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