Tesla loses billions of euros due to the Covid-19 pandemic

Tesla’s accounts are in the red as new containment measures in China severely slow its production. In an interview, Elon Musk described the Gigafactory in Berlin and Austin as huge financial sinkholes, admitting that the manufacturer has already lost billions of euros.

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Elon Musk seems to be having a hard time keeping his businesses afloat. While SpaceX has been on the verge of bankruptcy for months, it is now Tesla’s turn to be in trouble. The CEO had already announced the color a few weeks ago, declaring that he had to lay off several thousand employees because of a “very bad feeling”. This is confirmed today, in the light of the new anti-Covid measures put in place by the Chinese government.

Indeed, Elon Musk admitted that the car manufacturer is currently losing several billion dollars, for lack of being able to supply itself with batteries and other components for its cars. The businessman even goes so far as to describe the Gigafactory in Berlin and Austin as “Gigantic financial chasms”. Because of their recent opening, the latter have many difficulties in obtaining the materials necessary for the construction.

Tesla isn’t making enough money anymore

Elon Musk specifies that the Austin factory only manages to produce a very small quantity of cars per day, far from the 22,000 models per week targeted by the company. This catastrophic situation is due in particular to the blocking of many components in the Chinese ports that “no one is moving”, explains the CEO of Tesla. Despite everything, Elon Musk tries to be as optimistic as possible.

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“All this will be resolved very quickly, but it requires a lot of attention”, he added, without revealing a plan to try to raise the bar. As for the Gigafactory in Shanghai, already closed several times due to containment measures, a new two-week closure will soon take place for construction reasons. A particularly stormy context for Tesla therefore, which has already lost 600 million dollars following the Bitcoin crash.

Source: BBC

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