August 12, 2022


Automotive and technology

Musk says Tesla’s new car factories ‘losing billions of dollars’

2 min read


SAN FRANCISCO (Reuters) -Tesla Inc’s new car factories in Texas and Berlin are “losing billions of dollars” as they wrestle to raise production since of a shortage of batteries and China port troubles, Main Executive Elon Musk stated in an job interview printed on Wednesday.

“Both Berlin and Austin factories are gigantic cash furnaces suitable now. Okay? It is seriously like a huge roaring sound, which is the sound of money on fireplace,” Musk explained in an job interview with Tesla Entrepreneurs of Silicon Valley, an formal Tesla-recognized club, in Austin, Texas, on May perhaps 31.

The club divided its job interview with Musk into 3 parts, the final of which was unveiled on Wednesday.

Musk reported Tesla’s Texas factory generates a “tiny” variety of autos simply because of challenges in boosting creation of its new “4680” batteries and as resources to make its typical 2170 batteries are “stuck in port in China.” “This is all likely to get mounted true fast, but it demands a lot of focus,” he reported.

He said its Berlin factory is in a “slightly far better position” mainly because it begun with utilizing the regular 2170 batteries for autos created there.

Trying to get TO ‘NOT GO BANKRUPT’

He claimed the COVID-19-linked shutdowns in Shanghai “were really, incredibly hard.” The shutdown influenced car manufacturing not only at Tesla’s Shanghai manufacturing unit, but also at its California plant, which makes use of some car or truck parts made in China, he stated.

Tesla options to suspend most output at its Shanghai plant in the initially two weeks of July to get the job done on an enhance of the web-site to strengthen output, in accordance to an inner memo seen by Reuters.

“The past two yrs have been an absolute nightmare of provide chain interruptions, 1 matter soon after one more, and we’re not out of it still,” Musk claimed.

Tesla’s overwhelming problem, he mentioned, is “How do we hold the factories operating so we can pay folks and not go bankrupt?”

Musk reported early this month he experienced a “super lousy feeling” about the financial state and that the enterprise needed to minimize staff by about 10% and “pause all employing globally.” Earlier this 7 days, he reported a 10% reduce in salaried staff members at Tesla will happen above 3 months.

Tesla earlier this year commenced generation at the factories in Berlin and Texas, both equally of which are significant to the advancement ambitions of the best electric motor vehicle maker.

Musk stated he expected Tesla would get started output of its Cybertruck electric powered pickup trucks, which has been delayed, in mid-2023.

Reporting by Hyunjoo Jin in San Francisco and Joe White in DetroitEditing by Leslie Adler and Matthew Lewis


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