Tesla shareholders on lookout for plans that Tesla has to try to shield itself from fallout of Elon Musk’s antics elsewhere
- Disruption to global supply chains and bouts of Covid in China taking their toll
- The second-half outlook will be closely watched, as will production targets
The disruption to global supply chains and bouts of Covid in China will be among the key issues facing Tesla when it delivers its second-quarter earnings on Wednesday.
The electric car maker, run by the world’s richest man Elon Musk, saw its quarterly production and vehicle delivery numbers fall short of expectations in an update this month.
Issues with the supply chain and Covid have hurt its ability to ramp up production. The Shanghai factory has been hit by Covid, resulting in strict lockdown measures, while new plants in Texas and Berlin are fighting soaring costs.
The second-half outlook will be closely watched, particularly if Tesla cuts a target of making 1.5million cars in 2022.
Also looming large will be Musk’s impending legal battle with Twitter after he pulled out of a deal to buy the social media platform for £37billion.
Musk derives most of his wealth from his near-16 per cent stake in Tesla. But its shares have taken a battering in the wake of the spat, dropping 27 per cent since Musk’s bid was revealed, as investors fear his pursuit of Twitter is distracting him from the car firm.
With predictions the row will mean a nasty, long and costly court battle should Musk lose, an outcome that many on Wall Street consider likely, shareholders may be hoping for some crumbs of comfort in the quarterly results.
Shareholders may also be on the lookout for any plans that Tesla has to try to shield itself from the fallout of Musk’s antics elsewhere.