Tesla shares drop on plant shutdown due to Red Sea attacks
economictimes.indiatimes.comTesla shares dropped in trade after the carmaker said its lone European factory will be disrupted by attacks in the Red Sea. It also cut car prices in China.
The company reduced starting prices of the Model 3 sedan by 5.9% to 245,900 yuan ($34,300) and marked down the Model Y sport utility vehicle by 2.8% to 258,900 yuan, according to its website.
Hours earlier, Tesla told Reuters it will suspend most production at its Model Y plant near Berlin from Jan.
29 to Feb. 11, as suppliers shift transport routes in response to attacks on vessels in the Red Sea.
Tesla fell over 4% during Friday trade, putting the shares on course for an 11th decline in 12 sessions. The stock slumped Thursday after Hertz Global Holdings Inc.
announced plans to sell off a third of its US electric-vehicle fleet.
Volvo joins shutdown list
Volvo Car AB will suspend production at its Belgian plant next week due to supply chain disruptio. The factory in Ghent will halt output for three days after ships had to be rerouted, a Volvo spokesperson said via email.
