Elon Musk Said He Worries about Keeping Tesla Bankrupt
Electric car maker Tesla In a recent interview, CEO Elon Musk described the supply chain problems and the multibillion-dollar losses caused by the closure of the plant for the Kovik disaster as enough to justify bankruptcy.
“The last two years have been a nightmare of supply chain disruptions, one after another,” Matt said in an interview with Tesla Owners.
“We have not been able to solve these problems yet. “We are very worried about how to get the factories running, not to go bankrupt at the expense of the public.”
In the interviews, Mats described the risk of bankruptcy by exaggerating. For example, the phrase “want to go bankrupt” is a more colorful phrase for carmakers, rather than rigorous financial analysis.
But financially, Tesla is nearing the end of its most difficult quarter in more than two years. The Tesla plant in Shanghai has been closed for weeks due to the Kowloon download. Two Tesla plants, which opened quarterly in Germany and Texas, shipped billions of dollars due to supply chain problems, the company said.
“All of this will be resolved quickly,” he said in a statement issued on May 31, but did not release the report until late June 22.
“Both the Berlin and Austin plants are now huge incinerators, even bigger than the rubbish fire. These two plants are losing billions of dollars and are now costly and affecting any output,” Matt said. One of Tesla’s strongest critics thinks the company is facing bigger financial problems than most observers know.
“They are really at risk of going bankrupt,” said Gordon Johnson of GLJ Research. “Because, a lot of their money is stuck in China, they are not profitable until they enter China, and Tesla is in real trouble because China does not allow the transfer of domestic dollars abroad.”
Johnson points out that Tesla has decided to cut its salaries by 10%. He says that while hiring watchmakers continues to be employed, this is another sign of the problem.
But most of the companies that laid off their employees went bankrupt. In addition, Tesla and most other automakers around the world continue to face supply chain problems, but almost all other analysts predict that Tesla will continue to be profitable.
Tesla saw a 0.1 percent drop in new car production in the first quarter compared to the fourth quarter. However, its year-on-year production is still up 69 percent, with most other automakers around the world re-measuring production in the last quarter from last year due to supply chain problems.
Tesla has been making profits since late 2018 after reporting years of near-loss. The company reported quarterly profit growth over the past two years compared to the previous year.
It is clear that the rising profits will come to an end. Refinitiv estimates that adjusted revenue will fall to $ 2.5 billion in the second quarter, down from Tesla’s record $ 3.7 billion in the first quarter.
Automakers, including Tesla, plan to report second-quarter sales early next month. Shares of Tesla (TSLA) fell nearly a third since the beginning of the year, falling roughly 2 percent in mid-June trading.