Tesla has acknowledged that the outbreak of coronavirus COVID-19 in China and beyond could have a material adverse effect on its business, according to CNBC.
In the section “risk Factors” of the report on form 10-K for the year 2019, the company first noted the factor of epidemics.
“since the end of 2019, the media reported on the epidemic that emerged in China that led to the suspension of the government some trips and business operations as a precaution, said the company. The Tesla Gigafactory plant in Shanghai had been closed for a short time before it re-opened in February 2020 and joined our American factories, which continued to work.”
Tesla also temporarily closed its stores throughout China.
“it is Unknown whether and how affected by the global supply chain, particularly automotive parts, if available, the epidemic will continue for a long period of time, noted in Tesla. — We may incur costs or delays… which may have a material adverse effect on our business, operating results and financial condition.”
Tesla also announced an additional issue of shares worth about $ 2 billion. The money will be spent on strengthening the fiscal balance and corporate needs, says the company.