Economy Tesla says the Chinese public health epidemic is a...

Tesla says the Chinese public health epidemic is a risk factor for its business

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<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Tesla Inc. (NASDAQ: TSLA), in his regulatory filing recognized the novel corona virus as a “risk factor” for its business and operations at the Securities and Exchange Commission on Thursday. “data-reactid =” 18 “>Tesla Inc. (NASDAQ: TSLA) recognized the novel corona virus as a “risk factor” for its business and operations in its regulatory filing with the Securities and Exchange Commission on Thursday.

What happened

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The manufacturer of electric vehicles did not mention the virus with its name , but referred to an "epidemic of public health originating in China" that started at the end of last year, as mentioned first by CNBC, “data-reactid =” 20 “> The manufacturer of electric vehicles did not mention the virus by its name, but referred to an” epidemic of public health originating in China “that began at the end of last year, as CNBC first noted.

“[Beginning] In late 2019, the media reported a public health epidemic originating in China that has resulted in preventive government-imposed closings of certain trips and businesses, “Tesla said in the file.

“It is not known whether and how global supply chains, especially for auto parts, can be affected if such an epidemic persists.”

The company’s “gigafactory” in Shanghai, as it relates to its manufacturing facilities, was closed for approximately two weeks from January 29 to February 10 due to the outbreak.

“In connection with such events that are beyond our control, costs or delays may arise that can have a significant adverse impact on our business, operating profit and financial position,” added the automaker.

Why is it important?

Tesla’s stock rose about 92% through Thursday, largely due to rapid progress in China. The company has so far downplayed the impact of the outbreak on its business.

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During an investor meeting earlier this month, Tesla’s CFO, Zach Kirkhorn, said he “knows nothing of substance” when it comes to the effects of the virus on his supply chain for Fremont’s “Gigafactory”.

Kirkhorn added that the shutdown of the “Gigafactory” in Shanghai would have a limited impact on earnings because “Model 3 Shanghai’s earnings contribution is still at an early stage,” said CNBC.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the same file, Tesla announced a billion-share common stock offering After CEO Elon Musk said earlier that raising capital “makes no sense”. “data-reactid =” 29 “> In the same filing, Tesla announced a billion-share offering after CEO Elon Musk previously said that raising capital” didn’t make sense. I don’t make sense. “

Price action

Tesla’s stock was slightly lower at $ 800 after the regular session ended 4.78% higher at $ 804.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "More from Benzinga“data-reactid =” 32 “>More from Benzinga

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "© 2020 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.“data-reactid =” 37 “>© 2020 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.

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