Tesla shares touch two-year low amid COVID-driven concerns in China
Xiaolu Chu

Tesla (NASDAQ:TSLA) was a notable decliner on Monday, with the Austin-based automakerâs stock sliding to the lowest level since 2020.
In the latest development, regulators warned against an overzealous loosening of restrictions after three elderly residents of Beijing died of COVID-19. Additionally, multiple major cities including Guangzhou, Zhengzhou, and Shijiazhuang issued temporary lockdown orders, putting production shutdowns for automakers back on the table should cases rise in their respective manufacturing hubs.
âExcept for the normal operation of water, electricity, fuel oil, gas, communications, sanitation, the supply of grain, oil, meat and vegetables, logistics, supermarkets, pharmacies, medical institutions, catering enterprises and other industries and essential businesses, all other venues and business sites in the city will be temporarily closed and a negative nucleic acid test within 24 hours is required to enter these premises,â the state-backed Global Times said in a news brief explaining the Shijiazhuang anti-pandemic measures.
According to official Chinese data, over 26K new cases were reported in the nation, with 7-day rolling averages reaching levels not seen since the springâs lockdowns. At that point, many automakers, including Tesla, were forced to suspend production.

Concerns about the return to lockdowns led shares of China-based automakers Nio (NIO) -5.01%, XPeng (XPEV) -8.13%, and Li Auto (LI) -3.38% lower on Monday. Given its gigafactory in Shanghai as a major driver of profits for Tesla (TSLA), its shares also marked a notable decline.
Shares of the Elon Musk-led auto manufacturer moved over 5% lower at the intraday low, dropping to $170. The stock last closed below $170 on November 20, 2020. The decline extends a nearly 60% decline for the stock year-to-date, accelerated since CEO Elon Musk first disclosed a large stake in Twitter in early April.
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