Tesla’s new plants in Texas and Germany are “losing billions of dollars” as the electric carmaker struggles with production due to supply chain disruptions and battery shortages, Elon Musk said in a published interview. on Wednesday.
What he says: “Both the factories in Berlin and Austin are gigantic furnaces of money right now,” 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 money on fire.”
Why it matters: Musk told Bloomberg earlier this week that supply constraints are the biggest threat to Tesla’s growth, as he confirmed job cuts of up to 3.5%.
The panorama: Musk said in his interview with Silicon Valley Tesla owners that the pandemic-related shutdowns in China this year had proven “very, very difficult” for both the Tesla factory in Shanghai and other plants elsewhere.
- The Austin factory, in particular, was “losing a lot of money” facing challenges producing Tesla’s new 4680 batteries and “the tools needed” to make its conventional 2170 batteries “are stuck in China,” Musk said.
- “Overwhelmingly, our concern is how do we keep factories running so we can pay people and not go bankrupt?” he said.
Our thought bubble via Joann Muller of Axios: Musk has often complained about how difficult manufacturing is. Now, with the current economic situation, they remind you once again.