Tech

Musk says the Tesla Berlin and Austin plants are losing billions of dollars

“The last two years have been a nightmare for supply chain failures, one after the other, and we haven’t come out of it yet,” said Tesla CEO Elon Musk.

Patrick T. Fallon | Reuters

Tesla’s newest car plants in Texas and Berlin are losing “billions of dollars right now” as supply chain disruptions prevent the electric car giant from boosting production, CEO Elon Musk said in an interview published Wednesday.

“Both the factories in Berlin and Austin now are giant money ovens. Okay? It should be like a giant roar that is the sound of hot money,” Musk said in an interview with Tesla Silicon Valley owners, which was recorded 30 May. .

“Berlin and Austin are losing billions of dollars now because there are a lot of costs and almost no work. Working for Berlin and Austin and getting Shanghai back in the saddle is our overriding concern. Everything else is basically a trifle.”

Musk said the Texas factory was “losing crazy money” at the moment due to problems with scaling up production of cars with the so-called 4680 battery, Tesla’s latest technology. Meanwhile, tools for making cars for traditional 2170 batteries are “stuck in a port in China”.

“Just trying to keep the plants running for the last couple of years has been a very difficult thing, for example, supply chain disruptions have been serious, extremely serious,” Musk said.

“The last two years have been absolutely a nightmare of supply chain failures, one after another, and we haven’t come out of that yet.”

In China, the revival of Covid in recent weeks has led to closures in major cities such as Shanghai, where Tesla’s plant is located in the country. Tesla plans to suspend most of the plant’s production in the first two weeks of July to upgrade, Reuters reported on Wednesday.

After 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 hourly staff. The dismissal of Tesla will affect about 3.5% of the total workforce, Musk said this week.

Despite supply chain problems, Tesla is still aiming to produce 1.5 million cars this year, Musk said in April, though he warned that customers face long waiting times for their cars.

Musk says the Tesla Berlin and Austin plants are losing billions of dollars

Source link Musk says the Tesla Berlin and Austin plants are losing billions of dollars

Back to top button