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Elon Musk says new Tesla factories are ‘gigantic money furnaces’ losing ‘billions’

Elon Musk says new Tesla factories are ‘gigantic money furnaces’ losing ‘billions’ to supply chain chaos

  • Tesla factories in Austin and Berlin lose ‘incredible’ amount of money
  • Huge factories produce ‘small’ number of cars due to supply chain chaos
  • Musk expects Tesla to start production of its Cybertruck electric pickups in mid-2023
  • Shanghai’s COVID-19 shutdowns ‘have been very, very difficult,’ Musk says

Tesla CEO Elon Musk said his new auto factories are “losing billions of dollars” due to supply chain issues and battery shortages.

“This factory is losing crazy money right now,” he explained. “We should be running a lot more cars from this factory compared to a very small amount of cars.”

“The factories in Berlin and Austin are currently gigantic silver furnaces. OK? It’s really like a giant roar, which is the sound of burning money,’ he told members of a Tesla Owners Club from Silicon Valley to Austin in an interview published 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 at port in China”.

Telsa founder and CEO Elon Musk lamented the negative impact of supply chain disruptions on electric vehicle production at its gigafactories in Berlin and Austin, saying the two are currently losing ” billions of dollars.

“Everything is going to be settled very quickly, but it requires a lot of attention,” he continued.

“It will take more effort to bring this plant into full-scale production than it took to build it in the first place,” the chief executive said.

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

He said the COVID-19-related shutdowns in Shanghai “were very, very difficult.” The shutdown affected auto production not only at Tesla’s Shanghai plant, but also at its California plant, which uses some Chinese-made vehicle parts, he said.

“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?”

The electric vehicle maker began production at factories in Berlin and Texas earlier this year.

Musk told the group he expects Tesla to start production of its delayed Cybertruck electric pickup trucks in mid-2023.


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