Is EV Giant Tesla near to go bankrupt?

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The American electric car giant Tesla failed to bear the brunt of covid lockdown – forcing CEO Elon Musk to say that he is trying hard to keep Tesla out of bankruptcy. Musk mentioned in an interview that two of Tesla’s factories in Germany and Texas are costing them billions of dollars

Moreover, Tesla’s factory in Shanghai remains closed for weeks. Issues pertaining to Supply chain and pandemic lockdown has badly affected their financial accounts.

What Did Elon Musk Say?

In an interview, Musk said, “The past two years have been an absolute nightmare of supply chain interruptions, one thing after another. We’re not out of it yet; overwhelmingly our concern is how do we keep the factories operating so we can pay people and not go bankrupt.”

Musk also mentioned that factories in Austin and Berlin are also burning dollars because expenses are far higher than output.

Tesla’s Downturn

According to the experts, Tesla’s earnings in the second quarter of 2022 will drop down to US$2.5 billion from US$3.7 billion earned in the first quarter of 2022. Still, shows some edge over what they made (US$1.6 billion) in the second quarter of 2021.

Pakistan Auto industry

Tesla is not the only company facing the consequences of covid restrictions, the global auto industry also faced a shortage of semiconductor chips, halting car production from Japan to the US. 

The Pakistan auto industry suffered the same. Supply chain issues, chip shortage, shipping, and raw material costs led to production and delivery problems in the country. Afterwards, country’s deteriorating economy has made the matter worse.

what do you think ongoing economic turndown will end soon or retain for months? Share your thoughts in comments section.

For more views, news and reviews on the local and international automobile industries, keep visiting PakWheels Blog. 

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