Tesla’s (TSLA) stock has dropped to a new two-year low as the whole market takes a hit on the latest development regarding the ongoing US-China trade war.
On Monday, China announced new tariffs on $60 billion worth of U.S. goods and finished cars weren’t included, but the outlook is not good.
The stocks of automakers who currently rely heavily on vehicles imported from the US in China are significantly down, but Tesla’s stock took the worst plunge.
Tesla’s stock fell 5% today and adding to the recent decline following a tough first quarter 2019, TSLA shares have now fallen to a new two-year low:
The price drop also comes after Tesla raised $2.7 billion in a new capital raise, which included issuing new equity at $243 a share.
Now, the stock is trading at $227 a share at the time of writing.
In order to alleviate the pressure from the trade war on its business in China, Tesla is pushing to rapidly start production at its new Gigafactory in Shanghai and avoid any tariff.
Tesla started construction in January and said that it “will take roughly two years” until they start volume production with a planned capacity of 200,000 units and “then another two to three years before the factory is fully ramped up to produce around 500,000 vehicles per year for Chinese customers.
They have since accelerated the plan and now they want to produce 3,000 Model 3 vehicles at Gigafactory 3 in Shanghai by the end of the year.
A new drone video update of the construction site shows that the building is starting to take shape and Tesla is even starting work on the inside just months after starting construction:
Last month, CEO Elon Musk said that they plan to start production at the beginning of the fourth quarter.
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