Elon Musk says new Tesla plants are “huge money kilns” that lose “millions”

Elon Musk says Tesla’s new plants are “huge money kilns” and are losing “millions” as a result of supply chain chaos.

  • Tesla’s Austin and Berlin factories are losing a “crazy” amount of money
  • Giant factories produce a “small” number of cars as a result of supply chain chaos
  • Musk expects Tesla to start production of electric Cybertruck trucks in mid-2023.
  • The stops related to COVID-19 in Shanghai were “very, very difficult,” Musk said.

Tesla CEO Elon Musk said his new car factory was “losing a billion dollars” due to supply chain problems and a battery shortage.

“This factory is losing crazy money now,” he explained. “We should use a lot more cars from this factory than a very small car.”

“Both Berlin and Austin factories are huge money-making furnaces right now. OK? It’s really like a giant rumble sound, which is the sound of money on fire, ”he told members of the Silicon Valley Tesla owners’ club in Austin in an interview published on Wednesday.

Musk said Tesla’s Texas factory produces a “small” number of cars because of the challenges of boosting production of its new “4680” batteries, and that its usual 2170 battery-powered tools are “stuck in the port of China.”

Telsa founder and CEO Elon Musk lamented the negative impact of supply chain disruptions on electric vehicle production in the Berlin and Austin giga factories, and said both are losing “billions” of dollars at the moment.

“All of this will be fixed quickly, but it requires a lot of attention,” he continued.

“It will take more effort to get this factory into higher production than to build it first,” the general manager said.

Musk, who also co-founded SpaceX, said his Berlin factory was in a “slightly better position” as it began using traditional 2170 batteries for cars built there.

He said the stops related to Shanghai’s COVID-19 were “very, very difficult.” The blackout affected not only the Tesla factory in Shanghai, but also the California plant in the production of cars, which used some parts of vehicles made in China, he said.

“The last two years have been a complete nightmare of supply chain disruptions, one thing after another, and we’re still not out of it,” Musk said.

Tesla’s overwhelming concern, he said, is, “How do we keep factories running so we can pay people and go bankrupt?”

Manufacturers of electric vehicles began production at factories in Berlin and Texas earlier this year.

Musk told the group he expected Tesla to start production of its Cybertruck electric trucks in mid-2023, which has been delayed.


Elon Musk says new Tesla plants are “huge money kilns” that lose “millions”

Source link Elon Musk says new Tesla plants are “huge money kilns” that lose “millions”

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