Tesla Inc’s new automotive 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
Executive Elon Musk mentioned in an interview revealed on Wednesday,
Trend experiences with
reference to Reuters.
“Both Berlin and Austin factories are gigantic cash furnaces
proper now. Okay? It’s actually like a large roaring sound, which is
the sound of cash on hearth,” 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 unit produces a “tiny” variety of vehicles
due to challenges in boosting manufacturing of its new “4680”
batteries and as instruments to make its standard 2170 batteries are
“stuck in port in China.” learn extra “This is all going to get fastened
actual quick, nevertheless it requires plenty of consideration,” he mentioned.
He mentioned its Berlin manufacturing unit is in a “slightly better position”
as a result of it began with utilizing the standard 2170 batteries for
vehicles constructed there.
He mentioned the COVID-19-related shutdowns in Shanghai “had been very,
very tough.” The shutdown affected automotive manufacturing not solely at
Tesla’s Shanghai manufacturing unit, but additionally at its California plant, which
makes use of some automobile components made in China, he mentioned. learn extra
Tesla plans to droop most manufacturing at its Shanghai plant in
the primary two weeks of July to work on an improve of the positioning to
increase output, in line with an inside memo seen by Reuters.
“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 hold the
factories working so we will pay folks and never go bankrupt?”
Musk mentioned early this month he had a “super bad feeling” about
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%
minimize in salaried workers at Tesla will happen over three months. learn
extra
Tesla earlier this yr began manufacturing on the factories in
Berlin and Texas, each of that are crucial to the expansion
ambitions of the highest electrical automotive maker.
Musk mentioned he anticipated Tesla would begin manufacturing of its
Cybertruck electrical pickup vehicles, which has been delayed, in
mid-2023.
