💰 Tesla shares extend losses on demand worries in China

TL;DR

Dec 27 (Reuters) - Tesla Inc (TSLA.O) shares fell 11.4% on Tuesday following a Reuters report that Tesla was planning to run a reduced production schedule in January at its Shanghai plant sparked worries of a drop in demand in the world's biggest car market.The world's most valuable automaker's production cuts at the Shanghai plant come amid a rising number of COVID-19 infections in the country.Hayes also added that Tesla's stock was facing a "perfect storm" of high-interest rates, tax loss selling and share sales by some funds that hold a significant amount of Tesla stock.Tax loss selling is when an investor sells an asset at a capital loss to lower or eliminate the capital gain realized by other investments, for income tax purposes.Meanwhile, a Reuters analysis showed that prices of used Tesla cars were falling faster than those of other carmakers, weighing on demand for the company's new vehicles rolling off the assembly line."

Like summarized versions? Support us on Patreon!