Xiaolu Chu
Tesla (NASDAQ:TSLA) called reports from both Bloomberg and Reuters that Giga Shanghai will cut production “untrue” on Monday.
In premarket hours on Monday, both outlets reported that the EV manufacturer plans to lower production by as much as 20%. The decision was made after assessments on demand in the key market for Tesla (TSLA). The report stoked fears of waning demand in the region that has become increasingly competitive amid the emergence of powerful domestic competitors like BYD Company (OTCPK:BYDDY).
However, in a statement to Reuters, the Elon Musk-led company denied the claims in the reporting. Reuters nonetheless stood by the reporting, telling readers that “two sources with knowledge of the production plan” confirmed the details.
Shares of the Austin-based automaker fell over 6% at intraday lows in the wake of the reporting.
Read more on Chinese EV sales stats for November.
Image and article originally from seekingalpha.com. Read the original article here.