New Tesla facilities, According to Elon Musk, are “Losing billions of dollars.”
According to Elon Musk in an interview published on Wednesday, Tesla’s new facilities in Texas and Germany are “losing billions of dollars” as the electric vehicle manufacturer struggles with production as a result of supply chain breakdowns and battery shortages.
What he’s saying: In an interview with Tesla Owners of Silicon Valley, a group recognised by Tesla, on May 31, Musk remarked, “Both Berlin and Austin factories are enormous money furnaces right now.” “It actually sounds like a huge roaring sound, like money on fire.”
Why it’s important As he revealed employment cutbacks of up to 3.5 percent, Musk told Bloomberg earlier this week that supply shortages pose the largest threat to Tesla’s ability to grow.
A pandemic-related shutdown in China this year proved to be “very, very tough” for both Tesla’s Shanghai production and other facilities, according to Musk in a conversation with the Tesla Owners of Silicon Valley.
- Due to difficulties creating Tesla’s new 4680 batteries and the fact that “the tooling essential” for producing its traditional 2170 batteries “is stalled in China,” Musk warned that the Austin factory in particular was “losing outrageous money.”
- He stated, “Most of all, our worry is how to keep the plants running so we can pay workers and avoid going bankrupt.
Our thought balloon, via Joann Muller of Axios: Musk frequently laments how difficult manufacturing is. He’s being reminded once again right now because of the state of the economy.