Tesla shares are falling again, amid concerns about borrowing costs

Tesla’s stock fell during trading today, Thursday, with the return of pressure on the technology sector as a result of concerns about an increase in borrowing costs by the Federal Reserve.

production in China

According to Bloomberg, Tesla intends to halt some production at its factory in China until the end of February, with the aim of updating production lines that began two months ago, in preparation for the launch of a new version of the Model 3. ‏

Some first-stage workers will not be allowed to work on production lines, starting next Sunday, and this stage is responsible for the production of the Tesla Model 3 sedan and its multi-purpose sports car, the Model Y. ‏

This, and the production capacity of the Tesla factory in China is about one million cars per year. In 2022, the Shanghai factory produced more than half of Tesla’s production worldwide, amounting to 1.37 million electric cars. ‏

Inflation in America

Economic data released today, Thursday, revealed that the producer price index in the United States rose by 0.7% in January, while analysts expected it to rise by 0.4%.

Excluding some volatile commodities, the core PPI rose 0.5% last month, beating expectations for a 0.3% rise.

The producer price index is among one of the criteria for measuring inflation alongside the consumer price index, which will justify further monetary tightening by the Federal Reserve and raise interest rates, which will, accordingly, increase borrowing costs for companies.

In terms of trading, Tesla’s share fell by 20:10 GMT, by 0.7%, to $212.7.

This, and Tesla shares have risen by 70% since the beginning of 2023, which brought CEO Elon Musk close to restoring the top spot in the list of the world’s richest people, as his wealth increased by $ 50 billion since the beginning of January to $ 184 billion.