Tesla is losing billions of euros due to the Covid-19 pandemic

Tesla’s accounts are in the red as new containment measures in China are seriously slowing down its production. In an interview, Elon Musk called the Gigafactory in Berlin and Austin huge financial failures, 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 business afloat. While SpaceX has been on the brink of bankruptcy for months now, it’s Tesla’s turn to run into trouble. The CEO had already announced the color a few weeks ago, saying he had to lay off several thousand employees due to “feeling really bad.” This is confirmed today in light of the new Covid measures taken by the Chinese government.

Indeed, Elon Musk has acknowledged that the car manufacturer is currently losing several billion dollars due to the inability to supply batteries and other components for its vehicles. The businessman goes so far as to call the Gigafactories in Berlin and Austin “giant financial pits.” Due to their recent discovery, the latter are having great difficulty obtaining the materials needed for construction.

Tesla no longer makes enough money

Elon Musk elaborates that the Austin plant manages to produce a very small number of cars a day, far from the 22,000 models a week that the company is targeting. This catastrophic situation is due, in part, to the blockage of many components in Chinese ports that “no one is moving,” Tesla’s CEO explains. Despite everything, Elon Musk tries to be as optimistic as possible.

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“This will all be settled very quickly, but it needs a lot of attention,” he added, without revealing the plan to try and raise the bar. As for the Gigafactory in Shanghai, which has already closed several times due to containment measures, there will soon be another two-week closure due to construction reasons. So a particularly tumultuous context for Tesla, which has already lost $600 million since the Bitcoin crash.

Source: BBC

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