UNITED STATES (OBSERVATORY NEWS) — Tesla acknowledged that the outbreak of COVID-19 coronavirus in China and beyond could have a significant negative impact on its business, CNBC reports.
In the “Risk Factors” section of the 10-K report for 2019, the company first noted an epidemic factor.
“Since the end of 2019, the media has reported an epidemic in China that caused the government to stop some travel and business operations as a precaution,” the company said. “The Shanghai Tesla Gigafactory factory was closed for a short time. before it reopened in February 2020 and joined our American plants, which continued to operate.”
Tesla also temporarily closed its stores throughout China.
“It is not known whether and how global supply chains will be affected, especially auto parts, if such an epidemic lasts for a long period of time,” Tesla noted. “We may incur costs or delays … which could have a significant negative impact on our business, operating results and financial condition.”
Tesla also announced an additional issue of shares worth about 2 billion. The proceeds are planned to be used to strengthen the financial balance and corporate needs, the company said.
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