Tesla’s Situation In Shanghai Is An “Epic Disaster” For Its June Quarter, Wedbush’s Dan Ives Says
As Elon Musk continues to publicly melt down on Twitter about his proposed buyout offer and the left’s “dirty tricks” and political attacks that he is expecting, Tesla stock has been plunging.
The automaker’s stock came under pressure weeks ago, ostensibly after some investors started to do the math behind Musk’s proposed buyout offer of Twitter.
This morning, it’s under pressure again thanks to a price target cut by Wedbush’s Dan Ives, who has cited Shanghai’s lockdowns as his reasoning.
Ives called the situation in China “an epic disaster” for Tesla’s coming June quarter and said he expects to see “modest delivery softness”, according to a Bloomberg note out Thursday morning.
Ives also said he is expecting a “slower growth trajectory” in China into the second half of the year and called the headwinds out of Asia “hard to ignore”.
He also commented that the ongoing Twitter drama “may be a distraction” for Musk at a time when his attention should be focused on dealing with Tesla’s issues.
Recall, we noted days ago that “no vehicles were sold in Shanghai last month” as a result of the lockdown, according to an auto-seller association in the city.
We also noted that Tesla’s plans to restart Shanghai to its pre-pandemic production levels had been pushed back another week. Citing an internal memo, Reuters wrote just three days ago that Tesla is still planning on just one shift for its plant this week and a daily output of about 1,200 units.
Tesla is aiming for 2,600 units per day by May 23.
Additionally, it was reported Monday that Tesla would be recalling over 100,000 vehicles in China. 107,293 vehicles in China will be recalled “due to safety risks”, according to the China People’s Daily.
The recall, which relates to a defect in the central touchscreen during fast charging, “involves Model 3 and Model Y vehicles produced in the country between Oct 19, 2021, and April 26, 2022,” the report says.
Thu, 05/19/2022 – 08:26