June 6, 2023


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Expecting Bitcoin to Lose 4.7 Billion - E24

Expecting Bitcoin to Lose 4.7 Billion – E24

Supply problems, a pandemic factory, and a cryptocurrency decline are believed to affect the accounts of electric car maker Tesla.

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Just after closing time on Wall Street on Wednesday night, Elon Musk and Tesla will present the accounts for the second quarter.

Earnings are expected to decline for the second consecutive quarter, ending at $1.9 billion per quarter, or $1.83 per share, according to estimates obtained by Bloomberg.

Revenue is expected to fall at $16.88 billion in the same period.

One of the factors that will drag the outcome is the cryptocurrency’s decline in the second quarter. Tesla bought bitcoin for $1.5 billion at the beginning of last year, which is now expected to be of much less value.

Credit Suisse expects the company to write off $475 million, or 4.7 billion kronor, in connection with bitcoin investment, according to The Wall Street Journal.

But that’s not the only problem that has plagued Tesla in the past quarter.

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China shutdown

China’s tough policy on the coronavirus led the company to shutter its Shanghai factory for several weeks in the second quarter.

When production first started, there were strict rules and fewer shifts than usual.

The shutdown contributed to Tesla offering significantly fewer cars in the second quarter than in the previous quarter. This was the first time in two years that the speed of delivery had slowed. In 2021, the Chinese factory accounted for about 50 percent of Tesla’s total vehicle production, according to Bloomberg.

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Moreover, since the beginning of the year, Tesla has spoken that supply problems will likely affect production throughout 2022.

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“swallow money”

Analysts are also excited to see how the new plants are affecting the company. In March and April, Tesla opened factories in Berlin and Austin, Texas, respectively.

In May, Elon Musk called the new factories a “giant money laundering” due to the small number of cars currently produced there, according to luck.

“Berlin and Austin are losing billions of dollars right now,” the magazine quoted Musk as saying.

For this reason, it was important for the factory in China to reach full production. But the Shanghai plant is currently closed to development, according to Bloomberg.

Tesla’s recent challenges have led many to question the production target of 1.5 million vehicles by 2022. Many analysts expect that target to be lowered in the report. According to the WSJ, aggregate analysts now expect the company will struggle to deliver 1.4 million vehicles during the year.