Get Tesla Inc Reportshares fell for the first time in eight months, dipping below the $700 mark, as investors remain worried about long-term profit prospects for global automobile manufacturers due to an increase in input costs and the persistent semiconductor shortage.
Nissan Motor Co (NSANY) was warned Thursday that its operating profits for its 2023 fiscal year, which expires next March, will likely be unchanged from the previous period, owing in part to what it called an "uncertain situation" in global supply chains that has been caused by China''s ongoing Covid lockdowns.
Nissan''s COO Ashwani Gupta said that "semiconductor shortage is a new normal" that automakers will have to live with, because this is not going to happen tomorrow morning."
Toyota (TM) - A clumsy outlook yesterday, according to Get Toyota Motor Corp., the world''s largest automobile manufacturer, which said that "unprecedented" increased in raw materials costs would likely cause a 20% increase in its coming-year earnings.
Nickel prices, a major component in battery production, have increased by 33.8% this year to $27,700 per ton on the London Metals Exchange, whereas battery-grade lithium carbonate prices have increased by 60% from early 2021 levels.
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Tesla, for its part, stated that current quarter deliveries should be unchanged compared to the first three months of the year, even with China''s ''zero Covid'' crackdown. The full-year delivery estimate is 1.47 million units.
CFO Zach Kirkhorn said that "the Shanghai company has had a profound shift in the unpredictable nature of our part arrivals and our supply chain team in particular, especially the production planning component of supply chain, and that when there are part shortages coming, there''s a rush two days before that part is supposed to arrive to get it here."
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After Wells Fargo''s double-owngrade, Ford stock plummets, and Price Target declines.
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Tesla''s stock was sluggishly down in early Thursday trading, and the stock''s stock''s year-to-date decline was increased to around 42 percent.
According to a datalast week from the China Passenger Car Association (CPAC), Tesla produced just 10,757 automobiles last month, selling just 1,500, and leaving none, owing to a 22-day closure of its Shanghai facility during the city''s lockdown.
The April tally in April is the lowest in two years and compares to a sale total of 65,814 in the month of March. China''s total vehicle sales fell 37.5 percent from last year in April, the CPCA reported, the highest one-month decline since the pandemic in March 2020.
Closes might enable CEO Elon Musk to declare of a "reasonable shot" for 2022 deliveries to rise by 60% from last year as Twitter TWTR expands production facilities in Berlin and Austin.
On April 2, global deliveries in the first quarter increased by 67.2 percent from last year to a new high of 310,048 units, just shy of analysts'' projections, and only 0.5 percent from the last three months of 2021.
Compared to the same month last year, revenues increased by 84.8 percent to an all-time high of $18.76 billion, while better-than-expected automotive profit margins of 30% fueled a Street beating bottom line of $3.22 per share.
"Our supply chain and factory operations have been experiencing recent COVID-19 outbreaks," Tesla said in a statement with its first quarter earnings. "Furthermore, the prices of some raw materials have increased multiple-fold in recent months."
"Despite a continued emphasis on decreasing our manufacturing expenses wherever possible, the economy''s disadvantage" added the company. "Our own businesses have run below capacity for several quarters as the supply chain became the main limiting factor, which is likely to continue until 2022."