Why Tesla Stock Stalled on Tuesday
Shares of electric-car maker Tesla (NASDAQ: TSLA) stalled out of the gate on Tuesday, after Barron's commented that analyst estimates for the company's Q2 production levels "look a little high." As of 10:10 a.m. ET, Tesla stock is down 2.5%.
If you recall, it's been a week since Tesla announced plans to resume full-speed production of electric vehicles (EVs) at its Shanghai gigafactory in China -- 2,600 cars per day, 949,000 cars per year, and a big boost toward the company's goal of building 1.5 million EVs this year. One week later, though, Bloomberg reports that the company is still only up to 70% of production capacity, or about 1,800 cars per day.
However, it's important to factor in the loss of perhaps 100,000 cars worth of production already in Q1 and Q2 from COVID restrictions in China that impeded production, as well as slower-than-planned production ramps at Tesla's gigactories in Texas and Germany. When these factors are taken into account, Barron's calculates that Tesla might produce only 300,000 -- or even 260,000 -- electric vehicles this quarter. And that suggests that Tesla will fall far short of its 1.5 million-unit goal this year.
Source Fool.com
