Musk says Tesla’s new car factories ‘losing billions of dollars’ – Reuters.com

June 23, 2022 by No Comments

SAN FRANCISCO, June 22 (Reuters) – Tesla Inc’s (TSLA.O) new car factories in Texas and Berlin are “losing billions of dollars” as they struggle to increase production because of a shortage of batteries and China port issues, Chief Executive Elon Musk said in an interview published on Wednesday.

“Both Berlin and Austin factories are gigantic money furnaces right now. Okay? It’s really like a giant roaring sound, which is the sound of money on fire,” Musk said in an interview with Tesla Owners of Silicon Valley, an official Tesla-recognized club, in Austin, Texas, on May 31.

The club divided its interview with Musk into three parts, the last of which was released on Wednesday.

Register now for FREE unlimited access to Reuters.com

Musk said Tesla’s Texas factory produces a “tiny” number of cars because of challenges in boosting production of its new “4680” batteries and as tools to make its conventional 2170 batteries are “stuck in port in China.” read more “This is all going to get fixed real fast, but it requires a lot of attention,” he said.

He said its Berlin factory is in a “slightly better position” because it started with using the traditional 2170 batteries for cars built there.

SEEKING TO ‘NOT GO BANKRUPT’

He said the COVID-19-related shutdowns in Shanghai “were very, very difficult.” The shutdown affected car production not only at Tesla’s Shanghai factory, but also at its California plant, which uses some vehicle parts made in China, he said. read more

Tesla plans to suspend most production at its Shanghai plant in the first two weeks of July to work on an upgrade of the site to boost output, according to an internal memo seen by Reuters.

<p data-testid="paragraph-7" class="text__text__1FZLe …….

Source: https://www.reuters.com/business/autos-transportation/musk-says-teslas-new-car-factories-losing-billions-dollars-2022-06-22/

Tags:

Leave a Comment

Your email address will not be published.