Thursday, June 30, 2022

Elon Musk says Tesla’s new car factories have lost ‘billions of dollars’

Chief executive Elon Musk recently said Tesla’s new car factories in Texas and Berlin are losing “billions of dollars” as they struggle to ramp up production due to battery shortages and China port issues.

“Both the Berlin and Austin factories are huge money furnaces right now. OK? It’s really like a giant roaring sound, the sound of money on fire,” Musk told Tesla Owners Silicon Valley in Austin, Texas, on May 31, according to an official. Tesla Accredited Club, said in an interview with.

The club split its interview with Musk into three parts, the last of which was released on Wednesday.

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Musk said Tesla’s Texas factory produces “smaller” cars because of challenges in ramping up production of its new “4680” battery and that equipment to make its traditional 2170 battery is “stuck in port in China.”

The Shanghai COVID shutdowns in China were “very, very difficult,” he said. The shutdown affected car production not only at Tesla’s Shanghai factory, but also at its California plant, which uses some vehicle parts made in China.

“The last two years have been an absolute nightmare of supply chain interruptions after another, and we’re not out of it yet,” Musk said.

Tesla’s excessive concern, he said, “how do we operate factories so that we can pay people and not go bankrupt?”

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Musk said earlier this week that Tesla would cut 10% of salaried employees in three months. The world’s richest man also said the likelihood of a US recession was not high.

Tesla began production earlier this year at factories in Berlin and Texas, both crucial to the top electric carmaker’s growth ambitions.

Musk said he expects Tesla to begin production of its Cybertruck electric pickup trucks, which have been delayed to mid-2023.

Nation World News Desk
Nation World News Desk
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