Tesla investors making mistake by ignoring factory shutdown: expert - Business Insider

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Tesla investors should brace for an ugly couple months as the company's US factory remains closed indefinitely, analyst warns

said during the electric-car maker's first-quarter earnings call that the closure of Tesla's Fremont, California, car factory is a significant risk for the company, investors didn't appear to heed his warning.

If the Fremont factory remains closed, Tesla will have to pay the money it owes suppliers without taking in much revenue, Whiston said. Though the company's new factory in Shanghai has reopened, it can't replace the Fremont plant's output, and Tesla does not yet have a factory in Europe , he added. Musk said during the first-quarter earnings call that the Fremont plant makes the "vast majority" of Tesla's vehicles.

 

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