Coronavirus-induced panic leads to wipeout of Tesla’s 2020 gains as it closes factories

Coronavirus-induced panic leads to wipeout of Tesla’s 2020 gains as it closes factories

- The outbreak of the coronavirus has led to a wipeout of Tesla's gains in 2020 and left the market panic-stricken

- The coronavirus outbreak led to a shutdown of Tesla's Shanghai factory for two weeks and its California factory also faces similar danger

- Registration for the company's cars also fell by 46% in January 2020, as compared to the previous month

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YEN.com.gh has learned that the coronavirus has led to a wipeout of all gains recorded by Tesla Inc. in the year 2020.

On Wednesday, March 18, 2020, the company started trading with a 9% loss, priced at $390 per share and recorded more losses in a panic-stricken market.

Tesla has lost almost 7% from the end of the year 2019.

READ ALSO: Market regulator says Tesla may soon recall 3000 Model 3 cars from China

The coronavirus outbreak consequently led to the closure of Tesla’s Gigafactory in Shanghai for two weeks following a directive from the government as China raced to contain the virus.

Business Insider.com reports that plans are also in place to close the company’s factory in Fremont, California, in the United States of America (USA).

Tesla’s challenges come at a time when global markets are experiencing the effects of the coronavirus.

The company’s decision to install old chips in its Model 3 cars did little to help its brand as car buyers plotted a lawsuit.

Bloomberg also reports that the registration of Tesla’s cars fell by 46% in January 2020, as compared to the previous month.

In other news, four of the biggest technology companies in the world have lost a total of $1.3 trillion since February 2020.

Referred to as MAGA by United States president, Donald Trump, the companies are Microsoft, Apple, Google’s Alphabet and Amazon.

The companies lost their stocks as the markets continue to be upset by the coronavirus.

Business Insider reports that each of the companies has boasted of a market value of more than $1 trillion at one point in time.

At present, only Microsoft and Apple can boast of a market value of $1 trillion or more.

READ ALSO: Battery packs: Fresh reports show Tesla may be winning the race and leaving GM & Porsche behind

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