January 19, 2021

Tesla warns on shutdown as Musk calls for end to lockdown

Demand for Tesla’s electric cars held up in the first three months of the year, despite upheavals caused by the coronavirus pandemic.

Quarterly revenues jumped 30% from last year to $5.9bn (£4.7bn), allowing the firm to turn a small profit of $16m.

It is the third quarterly profit in a row for the company, marking a turnaround after years of losses.

But Tesla said forced shutdowns and limits on deliveries had clouded its forecast for coming months.

“Frankly I would call it forcibly imprisoning people in their homes against all their constitutional rights…that’s my opinion,” Tesla boss Elon Musk, who has been opposed to the lockdown measures, told investors in an earnings call on Wednesday.

“It will cause great harm, not just to Tesla but to many firms. While Tesla will weather the storm, there are many small companies that will not.

“And all of people’s – everything they’ve worked for their whole lives has been destroyed in real time.

“We’re going to have, and have many suppliers that are on super hard times, especially the small ones, and it’s causing a lot of strife to a lot of people.”

He added that Tesla was “a bit worried about not being able to resume production in the Bay area”, and said this should be considered “a key risk” because the firm only has two car factories – one in Shanghai and one in Fremont, California.

Mr Musk stressed that he did not mind if people wanted to stay at home, but he was concerned that citizens were being forced to lose their livelihoods as the lockdown continued.

Leave a Reply

Your email address will not be published. Required fields are marked *