Tesla (NASDAQ: TSLA) stock fell 4% on Tuesday following reports of an abrupt halt in production at its Berlin factory. The EV giant suspended operations after a suspected arson attack targeted a nearby electricity pylon.
The blaze, which erupted in a field adjacent to Tesla’s Gigafactory Berlin-Brandenburg in Grünheide, resulted in a power outage affecting the plant and its vicinity.
German authorities have extinguished the fire, averting its spread to the Tesla manufacturing site. A Tesla spokesperson confirmed to Reuters the evacuation of the site and the suspension of production activities.
The Volcano Group, a far-left activist organization, has claimed responsibility for the attack and reportedly issued a 2,500-word attack on the electric vehicle maker and its CEO, Elon Musk.
Musk said in response on X,
“These are either the dumbest eco-terrorists on Earth, or they’re puppets of those who don’t have good environmental goals.”
He added,
“Stopping production of electric vehicles, rather than fossil fuel vehicles, ist extrem dumm.”
The incident follows recent community resistance, as local citizens opposed Tesla’s plans to clear a forest to expand manufacturing capabilities and infrastructure at the plant. While production at the plant has slowed, Tesla achieved a significant milestone in January, producing 6,000 cars in a week for the first time.
The news of the production halt comes on the heels of a 7.16% drop in Tesla shares the previous day, triggered by a significant decline in the company’s sales in China. According to data from the China Passenger Car Association, Tesla’s sales in China plummeted to 60,365 vehicles in February, marking a 15.51% decrease from January and an 18.87% decline year-over-year.
Tesla (NASDAQ: TSLA) Stock Reaction
TSLA stock declined 3.93% to close at $180.74 on Tuesday. The traders had exchanged hands with 119,184,254 (119.18 million) shares compared to the average daily trading volume of 109.03 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
