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New Car Factories Of Tesla 'Losing Billions Of Dollars', Says Musk

New Car Factories Of Tesla 'Losing Billions Of Dollars', Says Musk
Tesla Inc's new car facilities in Texas and Berlin are "losing billions of dollars" as they struggle to raise production due to a battery shortage and China port concerns, according to Chief Executive Elon Musk in an interview published on Wednesday.
"Both Berlin and Austin factories are gigantic money furnaces right now. Okay? It's really like a giant roaring sound, which is the sound of money on fire," Musk said in an interview with Tesla Owners of Silicon Valley, an official Tesla-recognized club, in Austin, Texas, on May 31.
The interview with Musk was separated into three parts, the latest of which was released on Wednesday.
Tesla's Texas facility produces a "small" number of cars due to difficulties in ramping up production of its new "4680" batteries and tools to create its standard 2170 batteries being "locked in port in China," according to Musk. more info "This will all be corrected quickly, but it will take a lot of attention," he stated.
He claims that its Berlin plant is in a "significantly better situation" because it began using standard 2170 batteries for cars made there.
He described the COVID-19-related shutdowns in Shanghai as "very challenging." According to him, the stoppage impacted not only Tesla's Shanghai factory, but also its California operation, which uses some vehicle parts made in China.
According to sources citing an internal company document, Tesla plans to pause most production at its Shanghai facility in the first two weeks of July to work on an upgrade to increase output.
"The past two years have been an absolute nightmare of supply chain interruptions, one thing after another, and we're not out of it yet," Musk said.
Tesla's primary problem, he stated, is "how do we keep the plants running so we can pay employees and not go bankrupt?"
Musk stated earlier this month that he had a "very awful feeling" about the economy and that the company needs to cut workers by approximately 10% and "halt all hiring worldwide." Earlier this week, he stated that a 10% reduction in paid staff will take place over three months.
Tesla began manufacturing earlier this year at factories in Berlin and Texas, both of which are important to the company's development plans.
Musk said that Tesla would begin production of its delayed Cybertruck electric pickup trucks in mid-2023.

Christopher J. Mitchell

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