Shares of Tesla Inc.
slumped 1.2% in premarket trading Monday, adding to their worst monthly performance in more than two years, after China-based electric vehicle makers reported delivery declines. The electric vehicle maker’s stock had tumbled 19.2% in April, the biggest one-month decline since it plunged 21.6% in March 2020. April was also the seventh biggest monthly decline since Tesla went public in June 2010. The stock’s weakness on Monday follows April deliveries reported by NIO Inc.
and Li Auto Inc.
that showed sharp year-over-year declines, as a COVID-19 resurgence in China led to supply chain, logistics and production challenges. Tesla revenue from China in the first quarter was 24.8% of total revenue, while China accounted for 25.7% of total revenue for 2021. “As Tesla resumed production on April 18 [in China], we expect EV deliveries to be up [month-over-month] relative to an April dud but subdued overall levels,” Baird analyst George Gianarikas wrote in a research note. “We await additional data points around COVID restrictions in China to better understand future trends.” Tesla’s stock has been weighed down by concerns that Elon Musk, it’s chief executive, would have less time to focus on the EV maker after he launched a bid to buy Twitter Inc.
and following a near-$4 billion share sale of Tesla last week. Tesla’s stock has tumbled 17.6% year to date through Friday, while the S&P 500
has shed 13.3%.