A side show for the electric car company has been decried as the result ofTesla's interest in the virtual currency. When the factory in China was shut down for 22 days in April, it was a lifesaver. The shutdown had a severe impact on the company, so it sold off 75% of its holdings of the virtual currency.
It was important for us to maximize our cash position because we were uncertain as to when the covids in China would end.
He said that this should not be taken as a judgement on the digital currency. We were concerned about the company's cash flow.
The company made a small profit on the sale, but it was wiped out by the crash of thecryptocurrencies. The company reported a huge loss.
Despite the loss, Musk said the company is open to increasing its holdings of the virtual currency.
The biggest quarter-to-quarter drop since the start of the Pandemic was caused by the April shutdown of the factory in China. Since opening two new factories in Austin and Berlin, they didn't scale up fast enough to make up for the loss of production in Shanghai.
The company is working through the ramp inefficiencies of its new factories, which are progressing well, but have had an impact on margins as those factories come online, according to Kirkhorn.
The biggest drop in operating profits since the beginning of the year was caused by the steep investments in the new factories.
Executives were optimistic about the remainder of the year despite the recent challenges. In June, the factories in China hit a record level of output.
The second half of the year has the potential to be a record breaking one, but it is subject to force majeure. There have been a number of force majeures.
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