The trying times of Tesla Inc., one of the biggest electric- vehicle manufacturers in the world, continues. Yet, this time it’s not related to its CEO’s bid to buy Twitter, but rather the source stems from China. The target for production for Tesla has declined which has led an analyst to reduce their annual target on the once-profitable stock.

“With about 13,000 units of production per week and higher than average margins, any production loss at Shanghai is bound to significantly impact margins and earnings,” said Daiwa analyst Jairam Nathan, who cut his price target to $800 from $1,150.

Tesla Stock was considered a gold mine until recently, with an astronomical rise of 50% last year and, as of April 4, the stock closed at $1145. However, an increase in the stock price of Tesla last year is in part related to the disclosure of Tesla CEO Elon Musk’s 9.2% stake in Twitter.

Since Elon Musk made his stake in Twitter known to the public, he has been trying publicly to acquire the social media platform, as he doesn’t seem pleased with the way the platform is being operated.

Tesla stock has trended downward in value since Elon made his buyout of Twitter public, tanking to $620.57, its lowest in recent times. The reduction in value has wiped out almost half of Tesla’s market capitalization after reaching an all-time high (ATH) record in November.

Since Musk revealed his Twitter stake, Tesla shares have plunged 42% compared with a 13% decline in the S&P 500 Index. 

Compared to other tech giants like Meta, Amazon, Apple, and Google, Tesla’s performance in the market has been nothing to write home about. Only Netflix did a worse performance than Tesla among the big tech giants this quarter.

Tesla’s woes are not only on the market side alone, as it has been having issues since the outbreak of CV-19in its Shanghai factory, which is affecting production.

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