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Elon Musk says Tesla’s factories are ‘gigantic money furnaces’ that lose ‘billions’

Elon Musk says Tesla’s new factories are ‘giant money-making ovens’ losing ‘billions’ to supply chain chaos

  • Tesla’s Austin and Berlin plants are losing ‘insane’ amount of money
  • The huge factories produce a ‘small’ number of cars due to chaos in the supply chain
  • Musk expects Tesla to start production of its Cybertruck electric pickup trucks in mid-2023
  • COVID-19-related shutdowns in Shanghai ‘were very, very difficult,’ Musk said

Tesla CEO Elon Musk said his new car factories are losing “billions of dollars” to supply chain problems and battery shortages.

“This factory is losing an insane amount of money right now,” he explained. “We should be using a lot more cars from this factory instead of a very small number of cars.”

“Both factories in Berlin and Austin are huge money kilns at the moment. Okay? It’s really like a giant roaring sound, that’s the sound of money on fire,” he told members of a Tesla owners’ club in Austin’s Silicon Valley in an interview published Wednesday.

Musk said Tesla’s Texas plant is producing a “small” number of cars because of challenges in boosting production of its new “4680” batteries and because tools to make its conventional 2170 batteries “are stuck in the port of China.”

Telsa founder and CEO Elon Musk lamented the negative impact of supply chain disruptions on electric vehicle production at its giga plants in Berlin and Austin, saying both are currently losing

Telsa founder and CEO Elon Musk lamented the negative impact of supply chain disruptions on electric vehicle production at its giga plants in Berlin and Austin, saying both are currently losing “billions” of dollars.

“This is all getting resolved very quickly, but it requires a lot of attention,” he continued.

“It will take more effort to get this plant into high-line production than it took to build it in the first place,” the CEO said.

Musk, who also founded SpaceX, said its factory in Berlin is in a “slightly better position” because it started using the traditional 2170 batteries for cars built there.

He said the COVID-19-related closures in Shanghai were “very, very difficult.” The shutdown impacted not only auto production at Tesla’s Shanghai plant, but also its California plant, which uses some auto parts made in China, he said.

“The past two years have been an absolute nightmare of supply chain disruptions, one after the other, and we’re still not over it,” Musk said.

Tesla’s overwhelming concern, he saidis “How do we keep the factories running so we can pay people and not go bankrupt?”

The electric vehicle manufacturer began production at its plants in Berlin and Texas earlier this year.

Musk told the group he expected Tesla to begin production of its Cybertruck electric pickup trucks in mid-2023, which has been delayed.

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