Musk cites Tesla bankruptcy fears and wants you to know something big

Elon Musk wants to share good news.

The Tesla (TSLA) – Get the report from Tesla Inc. The CEO has faced some challenges lately, including layoffs, lawsuits over the layoffs and, according to the world’s richest man himself, worries about bankruptcy.

Musk said the electric vehicle maker is facing billions of dollars in losses at its new factories, supply chain issues and covid lockdowns, CNN reported June 23.

“The past two years have been an absolute nightmare of supply chain disruptions, one thing after another,” Musk said, according to CNN, which cited an interview with a group of Tesla owners recorded the month latest and recently published. “We’re not out of it yet. Our main concern is how to keep the factories running so we can pay people and not go bankrupt.”

“Gigantic Silver Furnaces”

In the same interview, Musk described the recently opened factories in Berlin and Austin as “gigantic money furnaces”.

Meanwhile, Credit Suisse analyst Dan Levy cut his price target on Tesla to $1,000 from $1,125 on June 24, while maintaining his outperformance rating.

Levy said he expects Tesla to see second-quarter deliveries of 242,000, which is below the sell-side consensus of 280,000, and largely due to Shanghai’s covid-lockdown. 19.

Additionally, the analyst cut its second-quarter estimate to $1.10 per share from $2.06 per share, below the consensus of $2.08, highlighting the outlook for weaker shipments, the impact on the associated margin and an expected depreciation of bitcoin.

Levy said he still remains positive on Tesla, noting that its long-term fundamentals are intact and growing supply constraints will likely extend its lead over other automakers in the race for electric vehicles.

Given all of this woe, it’s no surprise that Musk wants more people to know that Tesla — for the second year in a row — took top honors in the Cars.com 2022 American-Made Index.

The Index is an independent annual ranking of vehicle makes and models with the greatest impact on the US economy through factory jobs, manufacturing facilities and parts supply.

“Hardly anyone knows”

Tesla claimed the honor of most American manufacturing with the Model Y this time around, with last year’s top-ranked Model 3 coming in second.

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‘Hardly anyone knows’, Musk said on Twitter, the microblogging site he is looking to buy.

Tesla landed two additional top 10 mentions with the Model X at No. 5 and the Model S at No. 6.

“Someone of $TSLA should send a press release to all MSMs acknowledging TSLA’s dominance,” Gary Black, a Tesla investor and managing partner of The Future Fund LLC, tweeted. “And follow up with a call to the right person on Biden’s staff to get Biden to stand up for the TSLA, climate sustainability and Buy American. It could (take) one person in 20 minutes.”

But let’s not forget that Tokyo-based Honda tied Tesla’s top 10 with four of its own models: the Passport placed fourth, and the Ridgeline, Odyssey and Pilot took the final three spots in the top. 10.

Ford was also in the top 10 (F) – Get Ford Motor Company report Lincoln Corsair and Stellantis (STLA) – Get the Stellantis NV report Jeep Cherokee. General Motors’ (GM) – Get General Motors company report The Chevrolet Corvette came in at number 11.

“The Real Story”

“The composition of this year’s highly anticipated U.S. Manufacturing Index is particularly interesting in the context of our current market, where high gasoline prices and inventory scarcity meet the peak of consumer interest in electric vehicles and increased demand for products made in the United States,” Jenni Newman, editor of Cars.com, said in a statement.

“The fact that Tesla – an American-made all-electric brand – appears frequently and at the top of the list may indicate an upcoming alignment of market forces that could really explode once we overcome supply chain issues. microchips, especially if gas prices remain historically high,” Newman said.

It also bodes well for other original equipment manufacturers, she added, “including Honda, Ford and GM, which are working to diversify product lines with more EV options. and hybrids”.

Going to the United States was the real story of this year’s survey, Cars.com said. Forty percent of car buyers surveyed said that due to the pandemic, buying an American-built car is now more important to them, up 22% year-over-year.