Tesla shares extend losses on demand worries in China

Tesla Inc (TSLA.O) shares fell 11.4% on Tuesday after a media report that Tesla was planning to run a reduced production schedule in January at its Shanghai plant sparked worries of a drop in demand in the world’s biggest car market.

The stock, which fell to its lowest in more than two years and had its worst day in eight months, was the biggest drag on the benchmark S&P 500 index (.SPX) and the tech-heavy Nasdaq index (.IXIC).

It has lost more than half its value since the start of October as investors worry that Twitter was taking much of Chief Executive Elon Musk’s time. The world’s most valuable automaker’s production cuts at the Shanghai plant come amid a rising number of Covid-19 infections in the country reported Reuters.