It is a setback, which we do not know if it is temporary or lasting. A turnaround that the entire automotive industry is experiencing, but from which the young manufacturer Tesla seems to be suffering more than the others. Closely linked to the Chinese market, for its customers as well as for its supplies, the brand is currently experiencing a storm that its CEO does not hide.
Elon Musk has repeated it several times, in front of the participants of the Bloomberg agency’s economic forum in Qatar, but also in front of the Tesla club convention in the United States: his company is losing money. And not just a little: “Billions” explains the billionaire. In question: the reconfinement in China which deprives it of its most important clientele, but also of many electronic components and vital batteries for the assembly of its models.
The gigafactories of Shanghai, Berlin and Austin in slow motion
The brand new Berlin factory, where the Model Ys are assembled, suffered 2 weeks of technical unemployment due to a lack of parts. Same punishment for the Shanghai Gigafactory, where the cause of the closure was more related to confinement and works. As for the other recent production unit, that of Austin in Texas, it is idling, and is not capable of producing more than a few cars per week, very far from the objective of 22,000 models assembled each week. that the boss had fixed. Which admits today that these two factories are “financial pits”.
So Elon took action. The US legislation not being that of Europe, and technical unemployment being less protective there, it laid off 3,500 people among its American workforce. He had already done so a few weeks ago, by firing 10,000 other employees, explaining that he had a “bad feeling”. It is thus more than 10% of the workforce of Tesla, estimated at nearly 100,000 people, who are landed in this way.
This black series comes after the disappointments of Bitcoin, very shaken these days, and in which Musk would have lost nearly 600 million dollars, but also after the real false takeover of Twitter, which the tempestuous boss finally gave up. Tesla’s recent losses also come as the future of his boss’s other company, Space X, is also in jeopardy, as rocket launchers struggle to keep up with the pace demanded by customers.
However, is the enormous edifice set up by Musk really threatened? Space X, valued at 100 billion dollars on the stock market, and Tesla, which is worth almost 10 times more in the same basket, could they unscrew strongly? Nothing is less sure. The dark announcements of their CEO are also a way of alarming the markets, and explaining to them that it is time to invest in its securities.
In the name of what ? Of their own business, because a crash of these entities could lead to many others, and weaken other valuations in its fall. In the name of the good old law of “too big to fail” (too big to drop), the future of the American billionaire might not be as bleak as it seems to lead us to believe.