Tesla’s stock value plummeted by up to $20.8 billion today following reports of reduced production at its China plant, amidst slow electric vehicle sales growth and intense competition from Chinese manufacturers.
The company, headed by Elon Musk, is said to have reduced its Shanghai plant’s working schedule to five days a week from the usual six and a half, Bloomberg reports. This adjustment aims to decrease the production of both Model Y and Model 3, manufactured in China.
The end of an 11-year central government subsidy program for electric vehicle purchases in China at the close of 2022 has impacted the growth of EV sales.
Tesla’s shares saw a drop of as much as 3.8%. The company is currently the weakest performer in the S&P 500 for this year, with a loss exceeding 30% of its value.
Despite a 17% increase in overall passenger vehicle sales in China from the previous year, Tesla has experienced a decline in deliveries in the first two months of the year.
