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Tesla tumbles 17% as electrifying rally loses power – Source Reuters Tech News

SAN FRANCISCO (Reuters) – Tesla’s (TSLA.O) stock tumbled 17% on Wednesday, hitting the brakes on a dramatic rally as a senior executive said the coronavirus outbreak in China would delay deliveries of its Model 3 cars and analysts warned of its high valuation.

FILE PHOTO: A Tesla sign is seen on the Shanghai Gigafactory of the U.S. electric car maker before a delivery ceremony in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo

With Tesla still up more than 25% since the company posted its second consecutive quarterly profit a week ago, Canaccord Genuity cut its rating on Tesla to “hold” from “buy,” further shrinking the already small number of analysts who recommend buying the stock.

Tesla Vice President Tao Lin said on the Weibo social media platform that car deliveries from its new Shanghai plant would be temporarily delayed and that the company planned to restart production on Feb. 10.

The $2 billion factory is a key part of Chief Executive Elon Musk’s…

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Source Reuters Tech News

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