Tesla Inc’s outspoken CEO Elon Musk on Wednesday called sweeping U. S. stay-at-home restrictions to curtail the coronavirus outbreak «fascist» as the electric carmaker posted its third quarterly profit in a row.
Tesla Inc’s (TSLA. O) outspoken CEO Elon Musk on Wednesday called sweeping U. S. stay-at-home restrictions to curtail the coronavirus outbreak “fascist” as the electric carmaker posted its third quarterly profit in a row.
His remarks overshadowed an otherwise successful quarter that took many investors by surprise as automaker peers were hit by a slump in consumer demand and forced factory shutdowns.
Shares of the company were up 8.8% at $871 in extended trade.
Tesla’s profitable quarter comes just a day after Detroit-based rival Ford Motor Co (F. N) reported a $2 billion first-quarter loss and forecast losing another $5 billion in the current quarter as the coronavirus pandemic hits demand.
General Motors Co (GM. N) on Monday suspended its dividend and share buybacks and will report earnings May 6.
How Tesla fares in the current quarter and the remainder of the year will be an important test of the company’s durability. If Tesla can limit its losses, or even continue its profit streak and outperform legacy automakers, it will be in a stronger position to take sales from rivals weakened by the coronavirus disruption.
Tesla produces a fraction of the cars of its rivals but has a much larger stock market value on expectations of tremendous growth.
On the biggest disruptions to Tesla has been the government-ordered shutdown of its factory in Fremont, California, which sits idle since March 24 with stay-at-home orders running until at least May 31.
