Tesla stock extends sell-off, after biggest monthly decline in more than 2 years

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Shares of Tesla Inc. TSLA,
-0.21%
fell 1.2% in premarket trading on Monday, adding to its worst monthly performance in more than two years, after China-based electric vehicle makers reported lower deliveries. The electric vehicle maker’s stock had fallen 19.2% in April, the biggest one-month drop since plunging 21.6% in March 2020. April was also the seventh-biggest monthly drop since Tesla went public in June 2010. Monday’s stock weakness follows April. deliveries reported by NIO Inc. NIO,
+1.32%
and Li Auto Inc. LI,
+1.98%
which showed steep year-over-year declines as a resurgence of COVID-19 in China led to supply chain, logistics and production issues. Tesla’s revenue from China in the first quarter represented 24.8% of total revenue, while China represented 25.7% of total revenue for 2021. “While Tesla resumed production on April 18 [in China]we expect EV deliveries to be up [month-over-month] compared to an April miss but moderate overall levels,” Baird analyst George Gianarikas wrote in a research note. “We await additional data points on COVID restrictions in China to better understand future trends. Tesla’s stock was weighed down by concerns that Elon Musk, its chief executive, would have less time to focus on the electric vehicle maker after it launched a bid to buy Twitter Inc. TWTR,
+0.66%,
and after a nearly $4 billion Tesla stock sale last week. Tesla stock has fallen 17.6% year-to-date through Friday, while the S&P 500 SPX,
-0.32%
lost 13.3%.

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