Tesla Inc’s new automobile factories in Texas and Berlin are “shedding billions of {dollars}” as they wrestle to extend manufacturing due to a scarcity of batteries and China port points, Chief Government Elon Musk mentioned just lately.
“Each Berlin and Austin factories are gigantic cash furnaces proper now. Okay? It is actually like an enormous roaring sound, which is the sound of cash on fireplace,” Musk mentioned in an interview with Tesla Homeowners Silicon Valley, an official Tesla acknowledged membership, in Austin, Texas, on Could 31.
The membership divided its interview with Musk into three components, the final of which was launched on Wednesday.
Musk mentioned Tesla’s Texas manufacturing facility 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 “have been very, very troublesome,” he mentioned. The shutdown affected automobile manufacturing not solely at Tesla’s Shanghai manufacturing facility, but additionally at its California plant, which makes use of some automobile components 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 will we maintain the factories working so we are able to pay individuals and never go bankrupt?”
Musk mentioned earlier this week {that a} 10% minimize in salaried employees at Tesla will occur over three months. The world’s richest man additionally mentioned a U.S. 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.
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