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Tesla Takes a Dive Due to China Slowdown

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TSLA Stock - Tesla Plunges on Major China Slowdown

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TeslaΒ (NASDAQ:TSLA) finds itself in a tailspin today as investors react to the recent disclosure of the company’s EV (electric vehicle) delivery data for February.

The key highlight of this update is the organization’s shipment of 60,365 EVs from its Shanghai Gigafactory. This figure represents a 19% drop from the factory’s recorded deliveries in February 2023.

Eager market watchers understand that EV sales typically dwindle in China during the Lunar New Year celebration. This fact may explain a portion of the deceleration witnessed by Tesla last month.

Nonetheless, additional factors are contributing to the situation at hand. These include a dip in consumer demand impacting the broader EV sector and the escalating competition Tesla faces from local Chinese EV manufacturers, as reported by Investopedia.

Implications for TSLA Stock

Unfavorable delivery figures have prompted pessimistic sentiments from analysts regarding TSAL stock. Notably, Wedbush analyst Dan Ives expressed his concerns about the EV company’s data to Reuters.

β€œIt’s been a perfect storm of headwinds for Tesla in China. This was a negative data point that adds fuel to the fire around the stock.”

TSLA stock is down 2.7% as of Tuesday morning. This decline follows a 7.2% dip during regular trading hours on Monday, coinciding with the delivery data announcement.

Today presents a myriad of stock market narratives that warrant attention!

Rest assured, we have an array of riveting stock market updates primed for your perusal this Tuesday! This includes insights on GitLab (NASDAQ:GTLB) stock, Quoin Pharmaceuticals (NASDAQ:QNRX) stock, and a special trade of the day. Dive into the details using the links below!

More Developments in Tuesday’s Stock Market

By the time of writing, William White held no positions (directly or indirectly) in the securities discussed in this post. The views expressed herein belong solely to the author and are subject to the guidelines set by InvestorPlace.com.

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