Musk stated that the electric carmaker's bankruptcy may be a possibility in a recent interview with a group of Tesla owners. Tesla has recently encountered a number of issues, including Shanghai manufacturing closures resulting from the pandemic and supply chain interruptions that have an impact on the manufacture of its vehicles.
According to CNN, Musk stated in the interview that the previous two years had been "an utter nightmare with supply chain delays, one thing after another." "We're still not out of it. How do we keep the factory running, so we can pay the workers and avoid going bankrupt? It is what we are most worried about."
Musk was referring to the two mega factories that Tesla opened this year: the Austin, Texas facility, which opened in April, and the Berlin plant, which opened in March 2022.
The billionaire reportedly stressed the threat to the Austin facility, pointing out that supplies and parts for cars were "locked" in Chinese ports, preventing manufacturing from reaching the anticipated level.
After reporting $18.76 billion in revenue in the first quarter of 2022, topping forecasts, Tesla is coming off a profitable period that propelled its shares up over 6%.
But according to Tesla CFO Zachary Kirk horn, the automaker lost a month's worth of "build volume" as a result of Covid shutdowns at the Shanghai factory, even though production of all Tesla vehicles was "resuming at restricted levels" at the time of the announcement.
Kirk horn added, 'We're aiming to return to full production as soon as we can.
Tesla has lately taken significant steps to reduce costs, with Musk announcing in an email that was leaked earlier this month that the business will be laying off 10% of its workers.
He acknowledged in the note that the economy gave him a 'very awful feeling,' and he also informed Tesla executives that the company will "halt all worldwide hiring.''
When questioned whether the United States was headed for an economic recession, Musk used the term on Twitter last month. Musk has previously spoken about the idea of bankruptcy in general.
"For too long, money has been pouring down on the foolish. Bankruptcies must occur occasionally, 'Musk posted anything on the website.
It's unclear if he was making a reference to the future of his own business at the time.
Late Friday morning, Tesla's annual growth rate was roughly 7%
Of course, I know that. What is wrong with you. Hm
Tesla might file for bankruptcy, according to Elon Musk, who recently spoke with a group of Tesla owners. Due to pandemic-related manufacturing closures in Shanghai, Tesla has recently experienced a number of issues that have affected the manufacture of its vehicles and its supply chain. Are you kidding me?
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During the interview, Musk reportedly remarked, 'The previous two years have been an utter nightmare of supply chain delays, one thing after another." "It hasn't ended yet. Our main worry is how to keep the factory running, so we can pay our employees and avoid going bankrupt'
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