Tesla supply chain problems are paramount concern - Musk
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Tesla (NASDAQ:TSLA) CEO Elon Musk told an audience in Qatar that supply chain issues are the biggest roadblock to the automakerâs growth at present.
He explained that production has been hindered by raw material shortages and shutdowns of assembly lines in China. As such, the company has been struggling to meet still-strong demand for its vehicles. This dislocation, alongside well-understood slowdowns in China amid the springâs lockdowns, has created conditions for a âvery tough quarterâ for the EV manufacturer.
Elsewhere, Musk commented on Chinese EV competition and ruminated on the prospects for a recession in the near future. For the former question, Musk praised the Chinese competitors like Nio Inc. (NIO) and XPeng (XPEV), explaining that he has been impressed with their performance. In terms of recession, Musk was more pessimistic about its prospects.
âA recession is inevitable at some point,â he told the audience in Qatar. âAs to whether there is a recession in the near term, that is more likely than not.â
Despite the increasingly bearish outlook from its top executive on the overall economy, shares of Tesla rose over 3% in Tuesday's premarket trading as much of the market looked to rebound from a recent selloff.
Read more on Bitcoinâs likely impact on Teslaâs upcoming quarterly report.