ALBAWABA - The shares of American electric car manufacturer Tesla dropped more than 4 percent during a U.S. stock market trading session, after falling another 3 percent in pre-market trading.
The decline followed an announcement by Tesla CEO Elon Musk earlier in the day Monday that the company had signed a contract to open a new, massive production facility in the Chinese province of Shanghai, with actual production to begin next year.
The announcement failed to improve investors' confidence in Tesla's stock, due to the company's recent price cuts in the U.S. market, the fifth of its kind this year.
While Musk previously said that the price cut would lead to increased sales, the actual sales increases were less than the production levels, resulting in excess inventory.
As of 2:15pm GMT Monday, Tesla's shares traded on the Nasdaq Technology Index were down 4.15 percent to $177.42.
