Ilan Musk, founder of Tesla Electric Car Company, an American billionaire, said that the giant’s new plants in Germany and the United States are suffering huge losses due to battery shortages and supply disruptions in China, estimated at billions of dollars. Emerging coronavirus epidemic.
“The last two years have been a supply chain nightmare,” Musk said in an interview with Tesla Owners Group.
He added: “We are not out of the crisis yet, what worries us the most is how to keep the factories running so that we can give people money and not go bankrupt.”
Musk revealed in the interview that the two Tesla plants that opened in the first quarter in Germany and Texas lost billions of dollars to the company because supply chain problems have so far “weakened” their production.
“All of this will be fixed quickly, but both the Berlin and Austin factories are now giant furnaces that burn money,” he said in a statement recorded May 31 but not released until late Wednesday.
He added: “The Berlin and Austin factories are losing billions of dollars and it has high costs and there is hardly any output.”
“It all goes away very quickly, but it takes a lot of work,” he added.
“Bankruptcy is a real risk for the company,” Gordon Johnson, CEO of GLJ Research, told CNN Business on Thursday. “The reason is that Beijing is not doing that. Let the companies get their dollars back.” “Tesla, which is made abroad, has a real problem.”
Johnson cited Tesla’s decision to cut about 10 percent of his employees’ salaries – even as he continues to hire hourly workers – as another sign of trouble.
“Why do you think they are reducing staff salaries? This is a big warning,” he said.
However, almost all other analysts expect Tesla to remain a profitable company, despite supply chain problems that stop it and many other manufacturers around the world.
Tesla has been profitable since late 2018, after years of losses, and has had a quarterly profit increase over the past two years.
But the series of consecutive earnings growth appears to be coming to an end, as analysts expect second-quarter adjusted earnings to fall to $ 2.5 billion in the second quarter, up from $ 3.7 billion in the first quarter. Earned was reduced. Nevertheless, this adjusted revenue of $ 1.6 billion will be higher in the second quarter of 2021.
Tesla reported a 0.1 percent drop in new car production in the first quarter from the fourth quarter, but annual production continued to rise 69 percent.
Source: Lebanon Debate
