Tesla’s new plants in Texas and Germany are “losing billions of dollars” as the electric carmaker struggles with production due to supply chain disruptions and a shortage of batteries, Elon Musk said in an interview Wednesday.
What he says: “Both the factories in Berlin and Austin are giant furnaces for money right now,” Musk said in an interview with Tesla Owners of Silicon Valley, an official club recognized by Tesla, recorded on May 31. “It’s really like a giant roar, which is the sound of burning money.”
Why it matters: Musk told Bloomberg earlier this week that supply constraints were the biggest threat to Tesla’s growth as he confirmed job cuts of up to 3.5 percent.
Background: Musk said in an interview with Tesla’s Silicon Valley owners that the pandemic stops in China this year proved to be “very, very difficult” for both Tesla’s Shanghai plant and other plants in other countries. places.
- In particular, the Austin factory is “losing crazy money” as it faces challenges in producing Tesla’s new 4680 batteries, and “the tools needed” to produce its 2170 conventional batteries are “stuck in China”, Musk said.
- “Our concern is how to keep the factories working so that we can pay people and not go bankrupt?” He said.
Our thought bubble, through Joan Mueller of Axios: Musk often complains about how difficult production is. Now, with the current economic situation, he is reminded again.
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