Tesla slips after Shanghai production recovery timeline is pushed back
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Tesla (NASDAQ:TSLA
-4.1%) started off the week lower as investors digested the latest updates out of Shanghai.
The electric vehicle maker is reportedly delaying by a week a plan to restore production at the Shanghai plant to levels from before the recent lockdown. The current plan is to jump back up to multi-shift production of 2,600 units per day on May 23 from the current output level of around 1,200 units from one shift. The delay is likely to impact the Q2 production estimates from analysts on Tesla (TSLA),
Overall, the outlook is improving in Shanghai with normal life expected to return on June 1.
Tesla (TSLA) is also recalling about 107K cars in China due to a potential safety risk. The vehicles covered by the recall include 107,293 Model 3 sedans and Model Y crossovers that were produced at the Gigafactory Shanghai site between October 19, 2021, to April 26, 2022.
Shares of Tesla (TSLA) trade below their 10-day, 50-day, 100-day and 200-day moving averages.