New Tesla factories in Texas and Germany are ‘losing billions of dollars’ as the electric car maker struggles with production due to supply chain disruptions and battery shortages, Elon Musk said in an interview published Wednesday.
What he says : “The Berlin and Austin factories are currently gigantic silver furnaces”, said musk in the interview with Tesla Owners of Silicon Valley, an official club recognized by Tesla, recorded on May 31. “It’s really like a giant roar, which is the sound of burning money.”
Why is this important: Musk told Bloomberg earlier this week that supply constraints are the biggest threat to Tesla’s growth as it confirmed job cuts of up to 3.5%.
The big picture: Musk said in his interview with Tesla owners in Silicon Valley that the pandemic-related shutdowns in China this year have proven “very, very difficult” for Tesla’s Shanghai factory and other factories elsewhere. .
- The Austin plant, in particular, was “losing insane money” as it struggled to produce Tesla’s new 4680 batteries and “the tooling needed” to make its conventional 2170 batteries “is stuck in China.” , Musk said.
- “The biggest part of our concern is how do we keep the factories going so we can pay people and not go bankrupt?” he said.
Our thought bubble, via Joann Muller of Axios: Musk has often complained about the difficulty of manufacturing. Now, with the current economic situation, he is being reminded of that once again.