TSLA stocks plummet 3.3% after GM announces investment plan

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General Motors versus Tesla would be a match both automobile companies would continue to play as long as they exist. The rivalry between both firms continues to deepen after TSLA stocks stopped doing well in the market. This is after General Motors’ (GM) announcement to pump $20 billion on the company’s products.

Tesla, based in California, experienced a 3.3% decline in the worth of its stock on Thursday after GM announced it would produce electric vehicles from next year as part of its 20 billion dollars investment.

GM Chairman and CEO Mary Barra revealed that the investment would be spread over five years. She also said that the firm has a leadership position that its clients know and would move fast to take that charge.

GM versus Tesla rivalry affected TSLA stocks

Before TSLA stocks began to drop, it hiked over 95 points during the week before starting to plunge on Thursday. TSLA stocks in the last trading secession worth $724 with a $133 billion market cap. Currently, however, Tesla stock dropped 0.63%, valuing around $720.

The California based manufacturer has been dominating the electronic vehicle market. The firm’s stock value also hiked sporadically in the last eight months propelling it to become the 2nd largest automobile firm in the world.

However, analysts have advised that Tesla should be wary of its competitors.  Daniel Ives, an analyst, said the event is a clear shot against the firm. He believes it has created a hiatus in the electric vehicle landscape.

Ives said further that GM plans are quite severe for the year, which could intensify the General Motors versus Tesla rivalry.  He said his thoughts are with Tesla as GM’s already built portfolio in the automobile space, global clients, etc. would give Tesla a serious run in the electronic vehicle race.

Tesla faces complaints from Chinese clients

After the California based firm started manufacturing in Shanghai, two months later, local Chinese clients are begging to threaten to boycott the firm.

Reportedly, Tesla Model 3 clients have begun complaining of having older and slower chips in their vehicles. This has lead to clients threatening public litigation for swapping new chips with older ones.

Clients get to find out after getting a separate number on their control unit other than those on the vehicle information sheet. Tesla, however, has apologized for the errors.

Featured Image by Pixabay

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