Elon Musk Calls Tesla’s New Plants ‘Giant Cash Furnaces’ Losing ‘Billions’

Elon Musk called Tesla’s new factories “giant cash ovens” that are losing “billions” due to supply chain chaos.

  • Tesla factories in Austin and Berlin are losing “crazy” money
  • Huge factories produce a “tiny” number of cars due to the chaos in the supply chain.
  • Musk expects Tesla to begin production of its Cybertruck electric pickups in mid-2023.
  • The COVID-19 quarantine in Shanghai “was very, very difficult,” Musk said.

TeslaCEO Elon Musk said his new car factories were “losing billions of dollars” due to supply chain troubles and lack of battery.

“This factory is losing crazy money right now,” he explained. “We have to operate many more vehicles from this plant compared to very few vehicles.”

‘Both Berlin and the factories in Austin are now gigantic cash furnaces. Good? It really does sound like a giant roaring sound, which is the sound of burning money,” he told members of the Silicon Valley Tesla Owners Club in Austin in an interview published Wednesday.

Musk said Tesla’s Texas plant is producing a “tiny” number of vehicles due to problems scaling up production of its new “4680” batteries, and because the tools to make its regular 2170 batteries are “stuck in a port in China.” .

Telsa founder and CEO Elon Musk has deplored the negative impact of supply chain disruptions on electric vehicle production at his giant factories in Berlin and Austin, saying both businesses are currently losing “billions” of dollars.

“All this will be fixed very quickly, but requires a lot of attention,” he continued.

“It will take more effort to bring this plant to high-tech production than it took to build it in the first place,” said the chief executive.

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

He said the COVID-19 shutdowns in Shanghai “have been very, very difficult.” The closure has affected vehicle production not only at Tesla’s Shanghai plant, but also at its plant in California, which uses some car parts made in China, he said.

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

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

The electric vehicle maker began production at factories in Berlin and Texas earlier this year.

Musk told the group that he expects Tesla to begin production of its delayed Cybertruck electric pickups in mid-2023.