Tesla’s new automobile factories in Texas and Berlin are “shedding billions of {dollars}” as they battle to extend manufacturing due to a scarcity of batteries and China port points, Chief Government Elon Musk mentioned lately.
“Each Berlin and Austin factories are gigantic cash furnaces proper now. Okay? It is actually like a large roaring sound, which is the sound of cash on fireplace,” Musk mentioned in an interview with Tesla Homeowners Silicon Valley, an official Tesla recognised membership, in Austin, Texas, on Might 31.
The membership divided its interview with Musk into three elements, the final of which was launched on Wednesday.
Musk mentioned Tesla’s Texas manufacturing unit produces a “tiny” variety of automobiles due to challenges in boosting manufacturing of its new “4680” batteries and as instruments to make its standard 2170 batteries are “caught in port in China.”
The Shanghai COVID shutdowns in China “had been very, very troublesome,” he mentioned. The shutdown affected automobile manufacturing not solely at Tesla’s Shanghai manufacturing unit, but in addition at its California plant, which makes use of some car elements made in China.
“The previous two years have been an absolute nightmare of provide chain interruptions, one factor after one other, and we’re not out of it but,” Musk mentioned.
Tesla’s overwhelming concern, he mentioned, is “How can we preserve the factories working so we are able to pay individuals and never go bankrupt?”
Musk mentioned earlier this week {that a} 10 % reduce in salaried employees at Tesla will occur over three months. The world’s richest man additionally mentioned the US recession was extra probably than not.
Tesla earlier this 12 months began manufacturing on the factories in Berlin and Texas, each of that are vital to the expansion ambitions of the highest electrical automobile maker.
Musk mentioned he anticipated Tesla would begin manufacturing of its Cybertruck electrical pickup vehicles, which has been delayed, in mid-2023.
© Thomson Reuters 2022
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