Tesla's profits could suffer due to epidemic in China

Tesla's profits could suffer due to epidemic in China
Photo by Tesla Fans Schweiz / Unsplash

The company will release quarterly results on Thursday. Investors expect the shutdown in Shanghai to cause supply chain problems.

The COVID-19-related shutdown of Tesla's Shanghai plant and the cost of commissioning new plants in Berlin and Texas likely affected its first-quarter earnings, according to analysts polled by Reuters.

In January, Musk said that Tesla's sales growth would exceed 50 percent over last year. That means Tesla expects to deliver more than 1.4 million vehicles this year.