Posted 1/12/2024, 6:30:00 PM
Tesla Stock Plunges as Berlin Factory Shutdown Over Supply Chain Issues Compounds Headwinds
- Tesla stock dropped nearly $36 billion on Friday due to 2-week shutdown of Berlin factory caused by shipping delays from Red Sea attacks
- Attacks by Iranian-backed Houthi militants on ships passing through Red Sea have snarled supply chains and delayed vehicle components
- Production stoppage could impact up to 14,000 Teslas being produced, exacerbating existing headwinds like EV price cuts in China
- Tesla also facing rising US interest rates, Hertz cancelling EV order, annual Lunar New Year factory shutdowns in Shanghai
- Labor dispute with Swedish trade union since November could amplify impact of Berlin factory shutdown