Elon Musk says Tesla lost billions of dollars at Texas and Berlin units, blamed on chip shortages
Recently, CEO Elon Musk said Tesla’s new car factories in Texas and Berlin are “losing billions of dollars” as they struggle to increase production because of battery shortages and related problems. port in China.
“Both the factories in Berlin and Austin right now are huge smelters. Okay? It really does sound like a giant roar, it’s money burning.” Musk said in an interview with Tesla Owners of Silicon Valley, a club officially recognized by Tesla, in Austin, Texas, on May 31.
The club divided the interview with Musk into three parts, the last part being release on Wednesday.
Musk said Tesla’s plant in Texas produces a “small” number of cars because of the challenges of accelerating production of its new “4680” battery and because of the company’s tools to produce conventional 2170 batteries. they are “stuck at the port in China.”
Shutting down Shanghai’s COVID operations in China is “very very very difficult,” he said. The shutdown has affected auto production not only at Tesla’s Shanghai plant but also at its California factory, which uses some vehicle parts made in China.
“The past two years have been an absolute nightmare in terms of supply chain disruption, one after another, and we’re still not out of it,” Musk said.
Tesla’s big concern, he said, is “How do we keep the factories running so we can pay people and not go bankrupt?”
Earlier this week, Musk said that a 10% cut in salaried employees at Tesla would take place within three months. The world’s richest man also said a US recession is more likely than not.
Tesla earlier this year began production at plants in Berlin and Texas, both crucial to the leading electric-car maker’s growth ambitions.
Musk said he expected Tesla to begin production of its Cybertruck electric pickup truck, which has been delayed, by mid-2023.
© Thomson Reuters 2022
