Tesla founder Elon Musk calls coronavirus lockdown ‘fascist’ as economy falls

Tesla founder Elon Musk calls coronavirus lockdown ‘fascist’ as economy falls

Although the company said it has the capacity to make a half-million vehicles, it's uncertain how quickly its California plant can ramp up after being shut down due to the virus.

Shares of the company were up almost 2% at $813.77 in extended trade.

Tesla's stock price has largely shrugged off the broader market rout triggered by the pandemic, leaving Musk on the brink of the massive incentive package first approved by shareholders in March 2018. Today's it's hovering around $818.00, up another 2.5%.

Tesla reported a surprise profit and better-than-expected margins for the first quarter. Now it seems Tesla is planning to release the payment plan option by the end of 2020. Total revenues were $5.9 billion.

Investors are overlooking uncertainty about how soon the company will be able to resume production at its sole US vehicle assembly plant in Fremont, Calif., where authorities have extended a stay-home order to the end of May.

Canaccord Genuity said the strong gross margin at 20.6 percent was proof of "a meaningful operational improvement that the company has made over the past several quarters". Tesla delivered 88,400 vehicles during the first three months of the year, a 40 per cent increase from a year ago. However, deliveries of the Model 3 sedan and Model Y are up 50% year over year.

Sales of the Model Y crossover also commenced in a slowly recovering China. However, these numbers reflect the effects of the shelter-in-place orders and the slowing of the USA economy during the ongoing coronavirus pandemic. "It doesn't change the reality, which is that Tesla is making meaningful progress toward being a major player in the auto industry".

The Tesla CEO in particular appeared critical of the coronavirus-related restrictions in California as he agreed with a tweet suggesting the state's hospitals were laying off staff and going bankrupt.

Furthermore, Tesla CFO Zach Kirkhorn said Tesla ended the quarter with the "highest ever" vehicle order backlog despite the expiration of electric vehicle federal incentives on its orders, according to Marketwatch.

He fought against Californian stay-at-home orders, arguing the Tesla plant was an essential business, while leaked emails asking for workers to return to the plant this week have seen that plan shelved, while suggesting there would be no more cases of COVID-19 in the USA by the end of April. It is idled because of a Bay Area stay-at-home order affecting millions. Tesla's Fremont factory may be forced to remain shuttered (indefinitely). That was aided by production at its new factory in Shanghai. The automaker announced its nearing its production target of 4,000 Model 3 per week at its Shanghai gigafactory. So far, the company has not revised that figure.

Tesla's Full Self-Driving and Autopilot features have been factory installed for years, and they are also available as an OTA upgrade, giving customers the option to activate the systems.

Elon Musk went on a profane rant during another emotive Tesla Inc. earnings call, excoriating stay-at-home orders that are putting the electric-car maker's red-hot run at risk. "But to say that they can not leave their house, and they will be arrested if they do, this is fascist". Despite his strong opinion, Musk is incorrect since no USA states have actually "ordered" their residents to stay home.

How Tesla fares in the current quarter and the remainder of the year will be an important test of the company's durability.

The automaker reported earnings of $1.24 per share on $5.99 billion in revenue for the first quarter.

Related Articles