SAN FRANCISCO: Tesla’s new auto plants in Texas and Berlin are ‘losing billions of dollars’ as they struggle to ramp up production due to battery shortages and port issues in China, the director said recently General Elon Musk.
“Factories in Berlin and Austin are gigantic money furnaces right now. Okay? It’s really like a giant roar, which is the sound of money on fire,” Musk said in an interview. with Tesla Owners Silicon Valley, an official club recognized by Tesla, in Austin, Texas on May 31.
The club divided its interview with Musk into three parts, the last of which was published on Wednesday.
Musk said Tesla’s Texas plant is producing a “small” number of cars due to difficulties in ramping up production of its new “4680” batteries and that the tools to make its conventional 2170 batteries are “stranded in a port. in China”.
Shanghai’s COVID-19-related shutdowns in China “have been very, very difficult,” he said. The shutdown affected auto production not only at Tesla’s Shanghai plant, but also at its California plant, which uses some vehicle parts made in China.
“The past two years have been an absolute nightmare of supply chain disruptions, one thing after another, and we’re not out of it yet,” Musk said.
Tesla’s main concern, he said, is “How can we keep the factories going so we can pay people and not go bankrupt?”
Musk said earlier this week that a 10% reduction in Tesla’s salaried workforce will occur over three months. The world’s richest man also said a US recession was more likely than not.
Earlier this year, Tesla began production at factories in Berlin and Texas, both of which are key to the growth ambitions of the leading electric carmaker.
Musk said he expects Tesla to begin production of its delayed Cybertruck electric pickup trucks in mid-2023.