SAN FRANCISCO — Tesla’s new car factories in Texas and Berlin are “losing billions of dollars” as they battle to extend manufacturing as a result of of a scarcity of batteries and China port points, Chief Executive Elon Musk mentioned in an interview revealed on Wednesday.
“Both Berlin and Austin factories are gigantic money furnaces right now. Okay? It’s really like a giant roaring sound, which is the sound of money on fire,” Musk mentioned in an interview with Tesla Owners of Silicon Valley, an official Tesla-recognized membership, in Austin, Texas, on May 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” quantity of automobiles as a result of of challenges in boosting manufacturing of its new “4680” batteries and as instruments to make its typical 2170 batteries are “stuck in port in China.” “This is all going to get fixed real fast, but it requires a lot of attention,” he mentioned.
He mentioned its Berlin manufacturing facility is in a “slightly better position” as a result of it began with utilizing the standard 2170 batteries for automobiles constructed there.
SEEKING TO ‘NOT GO BANKRUPT’
He mentioned the COVID-19-related shutdowns in Shanghai “were very, very difficult.” The shutdown affected car 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, he mentioned.
Tesla plans to droop most manufacturing at its Shanghai plant within the first two weeks of July to work on an improve of the positioning to spice up output, in accordance with an inside memo seen by Reuters.
“The past two years have been an absolute nightmare of supply chain interruptions, one thing after another, and we’re not out of it yet,” Musk mentioned.
Tesla’s overwhelming concern, he mentioned, is “How do we keep the factories operating so we can pay people and not go bankrupt?”
Musk mentioned early this month he had a “super bad feeling” concerning the economic system and that the corporate wanted to chop workers by about 10% and “pause all hiring worldwide.” Earlier this week, he mentioned a ten% reduce in salaried workers at Tesla will happen over three months.
Tesla earlier this yr began manufacturing on the factories in Berlin and Texas, each of which are crucial to the expansion ambitions of the highest electrical car maker.
Musk mentioned he anticipated Tesla would begin manufacturing of its Cybertruck electrical pickup vehicles, which has been delayed, in mid-2023.