Tesla Stock Slips on Red Sea Delays Labor Costs and Price Cuts

Tesla shares dropped over 3% on Friday, impacted by various operational challenges.

Red Sea crisis caused supply chain delays, leading to the suspension of-

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Tesla's Berlin factory production from Jan. 29 to Feb. 11.

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Houthi militia attacks in the Red Sea disrupted global trade,

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affecting Tesla's transportation and supply chains.

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Baird analysts predict a 10,000 to 14,000 vehicle delivery hit in-

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Tesla's Q1 due to the German production suspension.

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Morgan Stanley noted ongoing Tesla price cuts, especially in China, but they-

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were more moderate than expected. Tesla's price reductions in the past year affected sales to-

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rental companies like Hertz, removing 20,000 EVs from its fleet.

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Hertz's move aims to balance supply with demand and address cost issues related to EV damage and depreciation.

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Labor strikes in Sweden and Scandinavia are impacting Tesla's business and reputation in Europe.

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In the U.S., Tesla raises worker pay rates to deter unionization, following wins by United Auto Workers in 2023.

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United Auto Workers plan to organize beyond the Big Three, targeting companies like Tesla and Toyota.

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