- Tesla opened more than 9% lower Wednesday at the start of trading in New York, erasing all gains it had made in 2020.
- The losses come amid a broader market sell-off induced by panic over the coronavirus pandemic.
- The outbreak forced Tesla to close its Shanghai Gigafactory for two weeks. On Tuesday, Alameda County said Tesla would need to close its factory in Fremont, California, as it is not “essential business.”
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Tesla has erased all of its gains so far in 2020 amid the coronavirus-led market sell-off.
Tesla opened 9% lower than Tuesday’s close at the start of trading Wednesday in New York, priced at $US390 per share. That means that year-to-date, Tesla has shed nearly 7% from the end of 2019.
Tesla’s losses come as global markets reel amid the coronavirus pandemic, which has sparked investor worry that economic growth will take a hit as consumers are stuck at home, travel is cancelled, and supply chains are disrupted.
The market rout snapped a record-breaking rally for Tesla stock, which hit an all-time high close of $US917 per share on February 19, then a 119% yearly gain in 2020.
Tesla has had its own roadblocks during the outbreak, which originated in Wuhan, China, in December. The automaker was forced to shut its new Shanghai Gigafactory for two weeks due to a government mandate as China raced to contain the virus.
The electric-car maker’s supply chain has also been disrupted by the outbreak – Tesla had to install old hardware for Autopilot, its advanced driver-assistance system, in China-made Model 3 sedans. In addition, demand in China, a key region for the automaker, has taken a hit amid the spread of the virus. Registrations of new Tesla cars fell 46% in January from the previous month, Bloomberg reported, citing China Automotive Information Net.
Tesla is also facing factory closures in the US. In an official tweet sent Tuesday, the Alameda County Sheriff’s Office said Tesla is “not an essential business” per the Alameda County Health Order, and that the company will have to close its factory in Fremont, California. That sent shares falling in after-hours trading Tuesday.
On Monday, CEO Elon Musk told employees that they don’t have to come to work if they’re sick or concerned about the novel coronavirus, according to a leaked email viewed by Business Insider.