Tesla (TSLA) – Get Tesla Inc Report shares edged lower Tuesday as authorities in Shanghai extended lockdown orders in China’s biggest city, potentially extending the closure of the carmaker’s workhorse gigafactory.
With Covid cases in the city of 26 million surging past 13,000 — the highest since the pandemic began more than two years ago — Shanghai officials extended their nine-day lockdown order, while ramping up testing and vaccinations, to nearly all parts of the country’s financial hub.
Tesla, meanwhile, will likely need to prolong the closures of its Shanghai factory, which has been dark since March 28, as restrictions on travel in and out of the city intensify.
The plant produces around 16,000 cars a week, and extended closures will add to pressures on Tesla’s California factory, as well as its newly-opened facility in Berlin. Giga Texas, Tesla’s production hub in the city of Austin, will officially open on Thursday.
Scroll to Continue
Tesla shares were marked 0.9% lower in pre-market trading to indicate an opening bell price of $1,135.20 each.
Tesla delivered 310,048 new cars over the three months ending in March, the company said in a statement, up 67.8% from last year but just 0.5% higher than the 308,600 reached in the final three months of last year.
Production actually fell, however, to 305,407 vehicles compared to the 305,840 tally recorded over the final three months of last year, thanks in part to supply chain disruptions and Covid-related closures at its Shanghai factory.
“We believe this is due to a weaker quarter in Giga Shanghai due to China’s zero-Covid policy and lockdowns, and slower European deliveries due to challenging logistics stemming from the Russian invasion of Ukraine,” said Canaccord Genuity analyst Jed Dorsheimer, who carries a ‘buy’ rating with a $1,200 price target on Tesla stock.
Tesla will also publish earnings for the three months ending in March on April 26.
Early indications suggest analyst are looking for revenues in the region of $17.57 billion, up 68.3% from last year and profits of around $2.24 per share.