Tesla shares close lower on Tuesday, company to add recycling facilities for EV components at plant in Shanghai

Tesla Inc (TSLA) intends to add facilities at its plant in Shanghai with which to repair and reproduce essential components such as electric motors and battery cells, according to a document submitted by the company to local authorities.

The auto maker also intends to add manufacturing capacities for car structures and electric motor controllers, the document showed. However, Tesla did not disclose details about its manufacturing capacities.

The company aims to expand manufacturing capacity of EV components in order to localize its supply chain.

Last year, the US electric auto maker also built a factory to produce EV chargers in Shanghai.

Tesla, which is manufacturing Model 3 and Model Y vehicles in China, sold more than 35,000 vehicles in March in the local market.

Tesla shares closed lower for the fourth time in the past ten trading sessions on NASDAQ on Tuesday. It has also been the steepest single-session loss since March 24th. The stock went down 4.53% ($33.46) to $704.74, after touching an intraday low at $703.46, or a price level not seen since April 21st ($698.18).

Shares of Tesla Inc have retreated 0.13% so far in 2021 compared with an 11.47% gain for the benchmark index, S&P 500 (SPX).

In 2020, Tesla Inc’s stock went up 743.40%, thus, it outperformed the S&P 500, which registered a 16.26% gain.

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