The two sites are giant furnaces for burning money, the company’s chief executive also announced
Tesla’s newest car factories in Texas and Berlin are currently losing “billions of dollars” as supply chain disruptions hamper the electric vehicle giant’s ability to increase production, CEO Elon Musk said in an interview. quoted by CNBC and BNR.
“Both the factories in Berlin and Austin are giant furnaces for burning money right now. OK? That should be like a giant roar that can be heard from the sound of burning money,” Musk said in an interview with Tesla Owners Silicon Valley. which was recorded on May 30 and is now published “Berlin and Austin are losing billions of dollars right now because there are a lot of costs and almost no results. Let’s get Berlin and Austin back up and put the factory in Shanghai completely back in the saddle “Our main concerns are. Everything else is generally very small,” Mux said.
Elon Musk also said the Texas plant was “currently losing insane amounts of money” due to problems with increasing car production with the so-called 4680 battery, Tesla’s latest technology. Meanwhile, carmaking tools for traditional 2170 batteries are “stuck in a port in China.”
“Just trying to keep factories running for the last few years has been a very difficult thing, and supply chain disruptions have been serious and extremely severe,” he said.
“The last two years have been an absolute nightmare in terms of supply chain disruptions, one after the other, and we have not yet come out of this nightmare.”
In China, the resurgence of the Covid pandemic in recent weeks has led to lockdowns in major cities such as Shanghai, where the country’s Tesla plant is located. Tesla plans to halt most of the plant’s production in the first two weeks of July to make improvements, Reuters reported on Wednesday.
Following the interview, Musk announced plans to cut Tesla’s workforce by 10% over the next three months. But the company plans to increase the number of part-time employees. Tesla’s layoffs will affect about 3.5% of the total workforce, Musk said earlier this week.
Despite supply chain problems, Tesla is still aiming to produce 1.5 million electric cars this year, Musk said in April, although he warned that customers face a long wait for the vehicles they buy.
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