What happened
Shareholders of Tesla (TSLA +1.15%) have had their ups and downs recently. Today has been another example of that, with the stock as much as 2.3% above Monday's close before dropping 2.5% earlier in today's session. As of 12:33 p.m. ET on Tuesday, shares were down a modest 0.25%.
So what
There are so many different things pulling on Tesla stock, its short-term movements can be explained by various news items. But the status of two of its factories is the biggest concern for investors focusing on the business.
NASDAQ: TSLA
Key Data Points
Much of the headlines are about CEO Elon Musk and the drama related to his efforts to back out of the $44 billion purchase of Twitter. Indeed, with a complex lawsuit against him seemingly imminent, that will be a distraction for Tesla's leader. But problems at its Berlin Gigafactory and more potential COVID-19 impacts at its Shanghai plant are weighing on the stock right now, too.
Now what
Yesterday, a sister site of Automotive News reported that the previously announced shutdown of Tesla's Berlin plant will not just be for upgrades, but also because of problems in the paint shop. The report said this explains why the factory is only offering black or white Model Y vehicles.
The two-week shutdown is to implement upgrades and to add a shift to increase production. But right now, European customers who want a Model Y in any color other than black or white are being supplied by the Shanghai factory, with deliveries not occurring until early 2023. The paint shop is reportedly a focus of the shutdown, too.
The Shanghai plant has also garnered attention from investors as it was heavily affected by COVID-19 shutdowns in the second quarter. The plant was back producing at a record rate in June. But a new wave of infections has some investors also speculating whether Shanghai will have future production disruptions.
Tesla seems likely to get its factories running more smoothly over the long term. But investors will still want to continue to monitor how these factories perform, as it will impact Tesla's growth rate for at least this year. But long-term investors also might want to buy any dip in Tesla shares that are mainly caused by short-term issues.
