Bidness Etc - Tesla Motors Stock Drops after Rumors of Delay in Gigafactory Project

Tesla Motors faced a sudden downfall in the price of the shares as soon as the rumors were seen to spread in the air about the company’s Gigafactory project coming to an unexpected hold. These rumors were backed up by an unknown source but the share price was not reluctant to drop and a decline of 3.36% was seen in the trading session held on Friday, 6th March 10, 2015. Two prominent news sources confirmed that the project has been postponed due some internal problems that the company as going through regarding the change of plans in the design and architecture of the plant.
Tesla however, conveyed through a spokesperson that the above-stated news was just rumors that were putting a bad impact on the shares of the company and that none of it was true. Alexis Georgeson, who is a spokeswoman of Tesla Motors, confirmed that the project was still in the process of getting established and dismissed the rumors saying that the Gigafactory project was going just as planned and no delay was seen in the construction at all. She also added that the auto-making company was currently engaged in other projects as well with various other companies and firms.
On the other hand, Tesla has also been on the news for cutting down jobs in its Chinese industry as the expected outcome from the Chinese market could not be reached. The company has recently started to lessen the job positions in its Chinese company.
The classic automakers were seen to make an announcement of cutting off one eighty jobs out of a total of 600 from the work base that the company has created in China. However, there are two opinions as to why the company needs to cut off jobs in the first place. Some researchers say that the company needs to take this step in order to meet the changes that have been decided to carry out in the structure of the business. On the other hand, some reports and analysts are of the opinion that the company is taking this step to meet the decline in sales that has been faced by the firm in the past quarter from the Asian country.
Tesla (NASDAQ: TSLA) has been going through a difficult financial time in China because the Chinese people have come to believe that a Tesla car is not easy to recharge and the mechanisms of the car are not fully understandable by them.