April 19, 2024

Balkan Travellers

Comprehensive up-to-date news coverage, aggregated from sources all over the world

Tesla Earnings: Will Elon Musk Handle Shanghai Gigafactory Shutdown Amid Twitter's Takeover Offer?

Tesla Earnings: Will Elon Musk Handle Shanghai Gigafactory Shutdown Amid Twitter’s Takeover Offer?

Placeholder while loading article actions

SAN FRANCISCO – The world is distracted by Elon Musk’s aggressive takeover attempt on Twitter. That might serve the purposes of the Tesla CEO well.

Tesla’s Shanghai “Gigafactory” where Make Some electric sedans and crossovers have been shuttered for weeks as a result of China’s “no-virus” policy, something the company is expected to address on its earnings call when it reports first-quarter results later Wednesday. Tesla has also come under fire for no longer including a standard charging cable with its cars, a move that hints at potential supply chain problems — and amounts to what analysts are calling a price increase.

Meanwhile, in recent weeks, Musk has consumed a sudden push to take control of the social media platform he uses for the company’s ads and connect with his more than 82 million followers.

Analysts and investors have expressed concern that Musk is becoming too weak — not just because of the demands of Tesla, which has opened several new plants in recent weeks, but because of other responsibilities as CEO of rocket-builder SpaceX and several smaller companies. If he succeeds in his bid to buy Twitter, Musk will have a historic and largely unprecedented catalog of tech companies under his leadership even after that. Questioning Last year how long can he keep up with the excess demand.

Musk and Tesla did not respond to requests for comment. Musk praised Tesla’s performance despite the challenges in a tweet this month.

He wrote: “This has been an *exceptionally* difficult quarter due to supply chain disruptions and the China Zero Covid policy.” “Excellent work by the Tesla team and key suppliers saved the day.”

See also  Researchers have 3D printed a cheesecake

Tesla said at the time that it had delivered more than 300,000 vehicles in the first quarter of 2022, putting its numbers as a solid result “despite ongoing supply chain challenges and plant closures.”

Analysts expect Tesla to report strong numbers for the first quarter, but that will largely be a footnote as the company faces questions about how the China shutdown will affect its year. Tesla has described the Shanghai plant as a major export hub, making it an important location for the automaker largely credited with ushering in the era of electric vehicles.

Over the course of a decade, Tesla has gone from being a dedicated automaker that supplies tens of thousands of vehicles to… more than 936,000 in 2021. Along the way, it encountered concerns about profitability, regulatory battles, and production challenges that posed formidable obstacles to Musk.

In some places, analysts said, Tesla buyers are already waiting for more than six months to get their new cars. Those wait times may remain because the China shutdown could reduce Tesla’s production by as much as 50,000 vehicles in the next quarter.

Twitter adopts a “toxic pill” aimed at thwarting Elon Musk’s takeover bid

Tesla’s production shutdown in China began in late March. Reuters mentioned On Tuesday, the factory reopened, citing China’s Xinhua News Agency, although Reuters mentioned A day before reopening will initially be in limited capacity with one shift – and workers will have to live on site.

Musk has long been sensitive to government-imposed factory shutdowns, criticizing in 2020 in response to in-place protection requests that required the closure of Tesla’s main plant in Fremont, California. He described the measures as “fascist” and urged the government to “return people to their freedom”.

See also  The United States urges South Korea not to fill China's shortage if Beijing bans micron chips

Elon Musk breaks into a rant laden with expletives, calling quarantine measures an ‘outbreak’

Gene Munster, managing partner at Loup Ventures, said the closure of Tesla’s factory in China points to further potential complications.

“The biggest factor is: Is China taking a different attitude toward doing business with US companies in the long term?” Asked. “Answer: They are.”

Besides stalled production lines, there are other indications that Tesla is feeling the pressures of the coronavirus pandemic — in the form of supply chain problems.

The company recently announced that it won’t be including charging cables in its new cars, much to the chagrin of even Musk’s most ardent supporters. Avid company followers note that the $400 component has been excluded from new car purchases and cannot be purchased on Tesla’s website because it was. run out.

The cable allows owners to charge their cars using a simple wall socket, although it’s only a temporary hole Because It charges slowly. However, they can serve owners in a bind when first taking ownership of a vehicle, visiting relatives, or at a location without charging for infrastructure.

However, the component, known as the “portable connector,” is a lower option than a wall connector installation, which is what the company recommends. This charger is usually connected to the home electrical system and the charging cable extends from the base, which is fixed to the wall.

The wall charger and . are not included required Electric to install safely. However, it is relatively popular among Tesla owners because it allows for faster charging. Tesla also has a vast network More than 30,000 superchargers where owners can charge their cars on the go.

See also  Twitter stock rose 4% after reports that it may accept Musk's offer on Monday

Musk sought to explain the change to stop including the mobile phone connector, saying, “The usage stats were really low, so it seemed wasteful,” but the owners weren’t satisfied. Later in response to the backlash, he said the company would lower the price to $200 and make ordering easier.

Munster described the omission as a “hidden price hike”.

Elon Musk’s Twitter offer frustrates employees. This is dangerous for him.