Elon Musk’s Tesla Has Very Bad News

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This is unquestionably good news for Tesla’s (TSLA) – Get Tesla Inc Report competitors, as it thwarts the electric car manufacturer’s aspirations to expand its share of the global market. Tesla’s chief executive officer, Elon Musk, seems to have successfully positioned the pawns in order to keep Tesla’s competitors away in the very lucrative market for electric automobiles. Tesla has begun shipping automobiles from its new manufacturing near Berlin, Germany, in accordance with established procedures.

Austin, Texas, will host the official opening of the group’s fourth manufacturing facility on April 7. Furthermore, Tesla has been successful in reaching deals with nickel manufacturers, which is a critical metal in the development of battery technology. Particularly advantageous are these agreements since they enable the company to better control its supply chain at a time when there is a significant imbalance between supply and demand for raw materials, the prices of which have risen dramatically since Russia’s invasion of Ukraine. Russia is a significant producer of nickel.

However, all of these magnificent structures are beginning to show signs of wear and tear. Indeed, Tesla has recently told its workers and suppliers that the company’s Shanghai production in China would stay shuttered for the foreseeable future. Musk’s firm sent a statement on Sunday informing staff in China that they should stay at home since official restrictions in Shanghai to minimize Covid-19 infections remained in effect. Tesla also encouraged its staff to continue to respect and adhere to the laws and regulations that govern their respective regions.

It is still not possible to work at the Shanghai plant.

It was this decision that destroyed the dreams of those who had been encouraged by a recent story from Reuters, which said that Tesla wanted to restart this facility, which manufactures 6,000 Model 3 cars per week and 10,000 Model Y SUVs per week. Following the release of its first batch of employees from a city-imposed lockdown to tackle an increase in Covid-19 cases, according to Reuters, the U.S. carmaker planned to restart production on Monday, April 4, the news agency said.

Tesla’s Shanghai facility has been closed since March 28 due to a production standstill. On Saturday, more than 8,000 new Covid infections were recorded in Shanghai, including 7,788 asymptomatic infections, marking a significant increase in the number of Covid-19 cases in the country. Shanghai, China’s biggest metropolis, has been closed down in order to undergo Covid-19 testing. Officials in Shanghai have announced that they would split the city in half for the testing, with the Huangpu River, which runs across the city, serving as a barrier. The eastern portion of the city, which is home to Tesla’s manufacturing facility, remained under strict lockdown.

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