Tesla, the electric car maker, announced Thursday, local time, that its factories in Fremont and New York will be temporarily shut down after the end of March 23, without disclosing a recovery date. The Fremont and New York plants are two of Tesla’s most important plants, the production of several electric vehicles and the latter, which produces clean energy products such as solar panels and solar roofs, and the temporary shutdown will also have an impact on Tesla’s revenue.
Tesla has done a remarkable job of electric cars and clean energy, but it hasn’t been around for long, and its assets are not yet as profitable as the historic auto giant.
It is also a matter of concern how long Tesla’s funds will last in the face of the impending shutdown of the two plants and the timing of the recovery, and they disclosed the information in documents filed with the Securities and Exchange Commission on Thursday.
Tesla disclosed in its filingthat that it had nearly $6.3 billion in cash reserves at the end of the fourth quarter and raised another $2.3 billion in February, believing that the current liquidity situation was enough for them to ride through a long period of uncertainty.