Why Tesla Stock Went Into Reverse on Thursday
After riding 3.8% higher yesterday on news of a factory expansion in Texas, and a new factory that the company might build in Indonesia, Tesla (NASDAQ: TSLA) stock is giving back about half of yesterday's gains. It was down 1.8% as of 12:25 p.m. ET on Thursday.
Expanded production capacity in the United States and Southeast Asia is good, but China remains Tesla's production powerhouse, with the Shanghai factory where Tesla builds more electric cars than anywhere else.
According to the company's published plans, Shanghai was supposed to play an even bigger part in Tesla's production strategy, with a stage three expansion scheduled to begin in mid-2023 that would lift production capacity of the factory to 2 million cars per year.
Source Fool.com
