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Business

Tesla’s car factories in Austin, Berlin “lose billions of dollars”




Tesla’s new plants in Texas and Germany “lose billions of dollars” as the electric car manufacturer struggles with production due to supply chain disruptions and battery shortages, Elon Musk said in an interview published on Wednesday.

What he says: “Both the Berlin and Austin factories are giant money furnaces right now,” in Musk in the interview with Tesla Owners of Silicon Valley, an official Tesla-recognized club, recorded on May 31st. “It really is like a giant roaring sound, which is the sound of money on fire.”

Why it’s important: Musk told Bloomberg earlier this week that supply constraints are the biggest threat to growth for Tesla, as he confirmed cuts of up to 3.5%.

The big picture: Musk said in an interview with Tesla owners in Silicon Valley that pandemic-related closures in China this year had proved “very, very difficult” for both Tesla’s Shanghai plant and other plants elsewhere.

  • The Austin plant in particular “lost insane amount of money” as it faced challenges in producing Tesla’s new 4680 batteries and the “tool needed” to make conventional 2170 batteries “stuck in China,” Musk said.
  • “Our concern is overwhelming how we keep the factories in operation so we can pay people and not go bankrupt?” he said.

Our thought bubble, via Axios’ Joann Muller: Musk has often complained about how difficult production is. Now, with the current financial situation, he is reminded once again.





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