Supply chain woes knock electric car firm Tesla

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Supply chain woes knock Tesla shares as boss Musk admits electric car firm has suffered a ‘very powerful quarter’

Tesla shares slumped after boss Elon Musk admitted the electric car maker has suffered a ‘very powerful quarter’.

In an electronic mail to workers over the weekend, billionaire Musk, the world’s richest man, stated the firm was coping with ‘provide chain and manufacturing challenges in China’ and that employees would ‘have to rally arduous’ to get well.

Tesla shares tumbled 7.1 per cent to $647.21 on Wall Street after the emails emerged.

Slowdown: Tesla boss Elon Musk stated the firm was coping with ‘provide chain and manufacturing challenges in China’ and that employees would ‘have to rally arduous’ to get well

Musk’s admission of a tough few months got here after manufacturing on the firm’s Shanghai manufacturing unit closed down for weeks as Chinese authorities launched strict lockdown measures to attempt to comprise an outbreak of Covid-19 within the metropolis.

Despite this, the Tesla boss stated manufacturing on the plant was ‘returning to full power’, including that its manufacturing unit in Austin, Texas, was ‘spooling up’ whereas its plant in Fremont, California, had achieved an ‘all-time report’ for day by day manufacturing final week.

But the views a few powerful quarter for Tesla might add to current fears amongst some traders that Musk is being side-tracked by efforts to take over Twitter.

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