Wednesday, Elon Musk demanded unprecedented US stay-at-home limits to curb the “Fascist” corona virus epidemic as the CEO of Tesla reported its third-quarterly income in a row.
His comments overshadowed an otherwise productive year, which shocked many investors as carmakers were struck by a downturn in market demand and forced shutdowns at factories.
Tesla’s positive period comes only one day after Detroit-based competitor Ford announced a first-quarter loss of $2 billion and expected to lose another $5 billion in the second quarter when the market for the corona virus pandemic reaches.
How Tesla fares would be an significant measure of the company’s resilience in the current quarter and the remainder of the year. If Tesla will reduce its losses, or even extend its profit streak and outperform traditional car makers, revenue from competitors affected by the corona virus disturbance would be more firmly placed.
On Tesla’s greatest setback was the government-ordered closure of its plant in Fremont, California, which has been sitting idle since 24 March with stay-at-home orders going until at least 31 May.
Elon Musk said he didn’t know when Tesla will restart development in California on a conference call on Wednesday, and called the state stay-at-home order a “significant challenge” for the company.
Tesla said it couldn’t forecast how easily car production and global supply chains would normalize, adding it will update net profit and cash flow full-year expectations after announcing current-quarter performance in three months.
Musk said Tesla was ramping up spending while other carmakers were cutting back. He said Tesla could in one to three months announce the location of a new US factory.
In January, Tesla said it had expected positive quarterly cash flow and positive net income to continue. The company did not update its preceding forecast to deliver half a million vehicles by the end of 2020 on Wednesday.
The organization said that operations at its Shanghai plant are going better than anticipated, with production levels of its Model 3 sedan projected to reach 4,000 units a week or 200,000 per year by mid-2020.