2024

Hope

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div>
<p class="has-drop-cap">Tesla (NASDAQ: TSLA) will temporarily <a aria-label="cease (opens in a new tab)" href="https://www.theguardian.com/technology/2024/jan/12/tesla-pauses-german-production-because-of-red-sea-shipping-attacks" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">cease</a> most of its production at the factory in Berlin due to shipping disruptions caused by recent <a href="https://tokenist.com/high-oil-prices-can-jeopardize-a-us-soft-landing/" rel="noopener noreferrer nofollow" class="deco-link">Houthi attacks in the Red Sea</a>. The company’s shares tumbled 2.9% ahead of the market opening on Friday.&nbsp;&nbsp;&nbsp;</p>
<h3 id="tesla-to-cease-most-of-germany-production-until-feb-11">Tesla to Cease Most of Germany Production Until Feb. 11</h3>
<p>Shares of Tesla slipped 2.9% at the market open on Friday after reports revealed that the carmaker plans to halt bulk of production at its plant near Berlin for two weeks due to parts delivery delays caused by recent Red Sea attacks.</p>
<p>Per the reports, the attacks launched by Houthi rebels led to shipping delays, forcing Tesla to suspend most production from January 29 to February 11. In December, an average of 236 ships traversed the Red Sea and Gulf of Aden daily, key international shipping routes.&nbsp;</p>
<p>The EV giant said the temporary halt could result in the non-production of approximately 5,000 to 7,000 cars.</p>
<p>Due to disruptions, companies were forced to use an alternative, much longer shipping route around the southern tip of Africa. Consequently, global trade fell 1.3% in December, data shows.&nbsp;</p>
<blockquote class="wp-block-quote">
 <p>“The armed conflicts in the Red Sea and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are also having an impact on production in Grünheide. The considerably longer transportation times are creating a gap in supply chains.”</p> <cite>– Tesla said. </cite>
</blockquote>
<p>The US and UK launched retaliation attacks targeting Houthis in Yemen on Friday, adding to the already elevated geopolitical tensions in the Middle East. The assaults triggered a significant spike in crude oil prices.</p>
<div class="cta-referral"><img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async">
 <div class="cta-referral__text">
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Telegram group&nbsp;and never miss a breaking digital asset story.</a></p>
 </div>
</div>
<h3 id="tesla-s-recent-challenges">Tesla’s Recent Challenges&nbsp;</h3>
<p>Tesla’s stock price drop at the market open marks the latest blow to the EV maker, which fell over 9% since the start of the year.&nbsp;</p>
<p>Though the stock witnessed triple-digit gains in 2023, it saw a slowdown in the latter part of the year as its spate of price cuts started to eat into profitability. As a result, Tesla’s operating margins <a href="https://www.automotivedive.com/news/Tesla-q3-earnings-profits-price-cuts-elon-musk/697212/#:~:text=Tesla's%20operating%20margin%20fell%20to,price%20cuts%20across%20Tesla's%20lineup." target="_blank" aria-label="plunged (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">plunged</a> considerably in the latest quarter.</p>
<p><a href="https://tokenist.com/wall-street-bullish-on-magnificient-seven-in-2024-except-for-tesla/" rel="noopener noreferrer nofollow" class="deco-link">Analysts expect</a> those headwinds to persist in 2024, mainly due to the challenges Tesla’s core EV business and the broader auto industry will likely face. Moreover, the company recalled<a href="https://tokenist.com/tesla-slides-premarket-as-ev-maker-plans-to-recall-1-6-million-cars/" rel="noopener noreferrer nofollow" class="deco-link"> 1.6 million cars</a> earlier this month amid software-related issues.</p>
<p>Meanwhile, the automaker has also been <a aria-label="overtaken by its Chinese rival BYD (opens in a new tab)" href="https://www.theguardian.com/environment/2024/jan/02/chinas-byd-overtakes-tesla-as-top-selling-electric-car-seller" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">overtaken by its Chinese rival BYD</a> as the top-selling EV manufacturer.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>Do you think Tesla can manage to navigate through the various 2024 headwinds? Let us know in the comments below.&nbsp;</strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/tesla-shares-dip-after-production-halted-as-red-sea-conflict-escalates/">Tesla Shares Dip After Production Halted as Red Sea Conflict Escalates</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Tesla Shares Dip After Production Halted as Red Sea Conflict Escalates

Table of Contents

Tokenist

Other articles published on Jan 12, 2024

How CoinShares Will Acquire Bitcoin ETF Provider Valkyrie Funds

Terrible Day For Spot Bitcoin ETFs And Bitcoin Despite $4.6 Billion In Total Trade

BlackRock, Fidelity And Grayscale Dominate Spot Bitcoin ETF Trading On First Day

List of 5 tokens to simulate the recent 1000% surge of Solana in 2024

ETHWomen

BlackRock CEO Larry Fink Shows Interest in Spot Ethereum ETFs

Join our free newsletter for daily crypto updates!