Tesla stock pauses amid ongoing supply chain issues – The Average Joe
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    Tesla stock pauses amid ongoing supply chain issues

    victorlei

    June 29, 2022

    Elon Musk is worried about many things: an “inevitable” U.S. recession, factories losing billions and a Twitter acquisition that never seems to close.

    In preparation for a downturn, Tesla is cutting 10% of salaried staff and laying off 200 people in its Autopilot team.

    What’s the big deal? $TSLA is down 40% since Shanghai shut down one of Tesla’s biggest production facilities.

    • In 2021, Tesla’s Giga Shanghai plant delivered over half its global vehicle deliveries.
    • While Chinese electric vehicle stocks jumped in the past month as Shanghai came out of lockdown — Tesla fell another 10%.

    Immense pressure: Last month, Musk said its new factories are “gigantic money furnaces” losing “billions.” Tesla just can’t get enough battery supplies, and port issues in China led to more delays.

    • But one thing Musk isn’t worried about is demand. Electric vehicles are in high demand with surging gas prices.
    • Supply is the issue. There’s a massive backlog on its cars and in the US market, several of its models are sold out for the year.

    Investors: Wall Street firms have cut earnings and delivery estimates on Tesla recently. Tesla is expected to report second-quarter delivery numbers in early July, which will give a clearer picture for investors.

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