Supply chain crisis knocks electric car firm Tesla

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Supply chain crisis rocks Tesla stock as CEO Musk admits the electric-car company faced a “very difficult quarter.”

Tesla shares fell after CEO Elon Musk said the electric-car maker was facing a “very difficult quarter.”

In an email to employees over the weekend, billionaire Musk, the world’s richest man, said the company was grappling with “supply chain and manufacturing challenges in China” and that employees would need a “tough rally” to settle down to recover.

Tesla shares fell 7.1 percent on Wall Street to $647.21 after the email arrived.

Recession: Tesla CEO Elon Musk says the company is grappling with “supply chain and manufacturing challenges in China” and employees need to “fight harder” to recover

Musk’s entry into a difficult few months comes after weeks of a halt to production at the company’s Shanghai factory as Chinese authorities implemented tough lockdown measures to stem the city’s Covid-19 outbreak.

Still, the Tesla boss said production at the plant was “returning to full strength,” adding that his Austin, Texas plant was “spooling up,” while his Fremont, California plant set an “all-time record.” ‘ has been reached. For daily production last week.

But thoughts of a difficult quarter for Tesla could add to existing fears from some investors that Musk will be sidelined by Twitter’s takeover bids.

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