US tech giant and electric car supplier Tesla (TSLA.US) has announced the suspension of production in Shanghai at one of the company's largest factories due to COVID 19 restrictions. Tesla was cautious about the suspension of production and stated that the radical measures taken by Shanghai to combat the coronavirus pandemic were appropriate. It is not yet certain whether the factory lockdown will also extend beyond Monday.
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The Shanghai factory supplies vehicles to the Chinese market and is a strategic export hub to Japan and Germany;
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In February 2022, the factory produced 56,515 vehicles, of which 33,315 were for export, according to information provided by the China Passenger Car Association. This means more than 2,000 cars produced per day;
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Shanghai is under lockdown due to China's 'Covid Zero' policy, traffic is being controlled and city residents are being tested for fear of developing a pandemic;
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Elon Musk has reported that he is re-infected with the COVID 19 virus; however, there are no noticeable symptoms of infection.
An SEC document revealed that Tesla wants to vote on a share increase at its upcoming shareholder meeting; the stock split is expected to be in the form of a dividend. The company's last stock split took place on August 31, 2020, at which time the ratio was 5:1.
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Create account Try a demo Download mobile app Download mobile appThe reduction in Tesla's share price will not affect the nominal value of the assets held by shareholders. At the same time, the carmaker's shares may become more easily accessible to a wider number of potential investors interested in investing in the company. Tesla shares are gaining more than 5% in pre-session trading on the US stock exchange, on the German stock exchange the company is already trading at more than 7% plus.
Tesla (TSLA.US) stock, D1 interval. The company was in a downtrend since the beginning of November 2021, at the beginning of the year it failed to climb to new peaks and deepened the sell-off. The share price reached a local low on the day of Russia's invasion of Ukraine (24.02), when the price slid below $700. Since then, Tesla has managed to correct the declines and for several days the share price has been moving in a short-term dynamic uptrend. The share price reacted with a sell-off near 1050 USD, which coincides with the 61.8 Fibonacci retracement. However, the declines were stopped. After the market opens, the demand is likely to make the resistance near 1050 USD to be broken, which will open the way for the company to continue gains in the area of 1130 USD where the 78.6 retracement is located. Source: xStation 5
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