SAN FRANCISCO: Tesla Inc.’s new car factories in Texas and Berlin are facing “billions of dollars in losses” as they struggle to ramp up production due to battery shortages and China port issues, Chief Executive Elon Musk said on Wednesday. Said in an interview published on June 22. ,
“Both the Berlin and Austin factories are huge money furnaces right now,” Musk said in an interview with Tesla owners, a Tesla-accredited official. There’s a voice.” Club, in Austin, Texas, on May 31.
The interview with Musk was divided into three parts, the last of which was released on Wednesday.
Tesla’s Texas factory produces “smaller” cars due to difficulties ramping up production of its new “4680” battery, and equipment to make its traditional 2170 battery is “stuck in port in China,” according to Musk.
“It’ll all recover quickly,” he said, “but it’ll take a lot of attention.”
He stated that its Berlin factory is in “slightly better condition” because it began using conventional 2170 batteries for cars manufactured there.
The pursuit of “not going bankrupt”
He described the COVID-19-related shutdowns in Shanghai as “extremely difficult.” He claimed that the shutdown had an impact not only on Tesla’s Shanghai factory, but also on its California plant, which uses some Chinese-made vehicle parts.
From an internal memo obtained by Reuters, Tesla intends to halt most production in the first two weeks of July in order to work on site upgrades to increase output at its Shanghai plant.
“The last two years have been an absolute nightmare of supply chain interruption after supply chain interruption,” Musk said.
“How do we operate factories so that we can pay people and not go bankrupt?” Tesla expressed extreme concern.
Musk stated earlier this month that he had a “very bad feeling” about the economy and that the company needed to cut staff by about 10% and “stop all hiring worldwide.” He announced earlier this week that Tesla would lay off 10% of its salaried employees in three months.
Tesla began production earlier this year at factories in Berlin and Texas, both of which are critical to the company’s growth plans.
Also check IKEA India to source more products locally to tackle rising inflation
