Tesla's stock prices plummet on news of Chinese Model 3 delay
The electric car maker has been forced to idle its massive Chinese Gigafactory due to concerns over the coronavirus outbreak.
The Chinese Model 3 situation likely doesn't have Elon this stoked anymore.
Tesla's stock has been on a meteoric rise over the past couple of weeks, but you know the saying, "Nothing gold can stay."
This is certainly true of the Big T, which saw its stock price dive by just over 17% on Wednesday after the brand announced that Chinese-built Model 3s that were initially promised for February would be delayed, thanks to the coronavirus outbreak, according to a report published Wednesday by CNBC.
That stock crash makes Wednesday, February 5, the second-worst day for Tesla in terms of single-day drops. What's the worst, you're probably asking? Back in 2012, Tesla's stock fell by 19.3 percent over the span of a day.
Does this decline in value mark the beginning of a market correction for the brand? Will it spur shareholders to sell off their stock while things are still good? The Saudi Arabian wealth fund did just that -- selling off billions of dollars in stock, around 8 million shares -- just before the price jumped 112%.
Of course, coronavirus isn't only throwing a wrench in Tesla's works. It's causing massive headaches for nearly every multinational corporation doing business in China, thanks to the government's mandatory shutdowns. Uber even shut suspended 240 accounts in Mexico over fears that some drivers who came in contact with infected people might have spread it to passengers.
We're also not sure how the Chinese shutdowns will affect Tesla's supply lines, especially as it moves to ramp up production of the Model Y crossover. We reached out to Tesla for comment, but it didn't immediately respond.
