Tesla Shares Dip Amid Red Sea Disruptions

The leading American brand in electric vehicle production, Tesla, has announced a decline in its stocks due to the ongoing conflicts in the Red Sea region, significantly impacting transportation routes in Europe and Asia.

Production Suspension in Germany

Due to supply shortages resulting from these conflicts, Tesla confirmed that it would suspend production at its factory in Berlin from January 29 to February 11, 2024. This suspension will have a negative impact on the company’s sales volume for the year.

Tesla Car Prices Decrease

In response to the crisis, the American manufacturer has decided to once again lower the prices of Tesla electric cars in China to maintain sales. Sources indicate a price reduction of approximately 5.9% for the Model 3, bringing its price to $34,300. Additionally, the price of the Model Y has decreased by around 2.8%, reaching approximately $36,400.

It’s worth noting that the company had previously reduced its car prices due to intensifying competition with major Chinese car companies, including BYD. Tesla had also made statements about recalling 1.6 million cars in China to update safety systems on January 5 of this year, a move that allowed BYD to surpass Tesla in sales volume.

The impact is expected to affect other car companies worldwide, as recent sources indicate that some major shipping companies are avoiding crossing the Red Sea trade route, a key axis for global trade in general. How will companies overcome this crisis, and will the consequences truly be severe?

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