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Elon Musk says he's worried about protecting Tesla from bankruptcy

New York (CNN Business)Tesla loses billions of dollars due to new factory, supply chain problems and Covid lockdown Facing Enough for CEO Elon. A mask that mentions the possibility of bankruptcy in a recent interview.

"The last two years have been an absolute nightmare of supply chain disruptions," Musk said in an interview with a group of Tesla owners. "We haven't got out of it yet. It's how we keep paying people and keeping our factories running so they don't go bankrupt."

Mask is another interview You may have been engaged in exaggeration at the location and did so when you mentioned the risk of bankruptcy. For example, automakers generally said they "desperately want to go bankrupt." This is not a rigorous financial analysis, but a colorful term.

However, the company has been in more than two years and is approaching the end of the most financially difficult quarter.

Tesla'sfactory in Shanghai was closed forweeks due to aCovid-related blockade. And Musk said in an interview that two Tesla factories,GermanyandTexas, were losing billions of dollars due to supply chain problems. I made it clear. Previous "puny" output.

"All this will be fixed very quickly," he said in a comment recorded on May 31, but wasn't released until the end of Wednesday. "Currently, both Berlin and Austin factories are huge gold kettles. There is a huge roar that is the sound of fire. It is bigger than the dumpster [fire]. The dumpster is too small. Berlin and Austin are too small. We've lost billions of dollars. Now it's hugely expensive and has little success. "

One of Tesla's toughest critics is recognized by most analysts at the company. I think we are facing a bigger financial problem than we are.

"Bankruptcy is a real risk to these people," Gordon Johnson of GLJ Research told CNN Business Thursday. "Why? Much of their cash is trapped in China. They didn't make a profit until they came to China, and China didn't allow companies to remit the dollars they earned abroad. Given that, Tesla has a real problem. ""

Johnson points out the decision that Tesla will cut about 10% ofsalaried workers as another sign of the problem..

"Why do you think they are reducing people? That's an important signal of announcement," he said.

However, most companies that reduce staff never approach bankruptcy filings. And virtually all other analysts predict that Tesla will remain profitable, even though supply chain issues have plagued Tesla and most other manufacturers around the world.

Tesla has been profitingsince late 2018, after reporting few losses over the years. The company has reported an increase in quarterly profits over the past two years compared to the previous quarter.

The continuum of rising profits is clearly nearing its end.

Analysts surveyed by Refinitiv predict that adjusted revenues in the second quarter will drop from a record $ 3.7 billion Tesla in the first quarter to $ 2.5 billion in the second quarter. increase. Still, it will increase from adjusted revenue of $ 1.6 billion in the second quarter of 2021.

Tesla's new car production in the first quarter was down 0.1% compared to the fourth quarter. However, its year-over-year production was still up 69%, and most other automakers around the world reduced their quarterly production from the previous year's levels due to supply chain issues.

Automakers, including Tesla, will report second-quarter sales early next month.

Tesla (TSLA)'s share has fallen by nearly a third since the beginning of the year. Trading at noon on Thursday fell by about 2%.