Musk says Tesla’s new automobile factories ‘shedding billions of {dollars}’

Musk says Tesla’s new automobile factories ‘shedding billions of {dollars}’

SAN FRANCISCO, June 22 (Reuters) – Tesla Inc’s (TSLA.O) new automobile factories in Texas and Berlin are “shedding billions of {dollars}” as they wrestle to ramp up manufacturing resulting from battery shortages and issues with China’s ports, mentioned Chief Government Elon. Musk mentioned in an interview printed Wednesday.

“Each the Berlin and Austin factories are gigantic cash furnaces proper now. Okay? It actually is sort of a large roar, which is the sound of cash burning,” Musk mentioned in an interview with Tesla Homeowners of Silicon Valley. , an official firm acknowledged by Tesla. membership, in Austin, Texas, on Could 31.

The membership divided its interview with Musk into three elements, the final of which was printed on Wednesday.

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Musk mentioned Tesla’s manufacturing unit in Texas produces a “small” variety of automobiles resulting from challenges in boosting manufacturing of its new “4680” batteries and since tooling to make its standard 2170 batteries is “caught within the port of China.” “. learn extra “This may all be mounted in a short time, nevertheless it requires lots of consideration,” he mentioned.

He mentioned his Berlin manufacturing unit is in a “barely higher place” as a result of it began out utilizing conventional 2170 batteries for automobiles constructed there.

SEEKING ‘NOT GOING BANKRUPTCY’

He mentioned the COVID-19-related lockdowns in Shanghai “have been very, very tough.” The shutdown affected auto manufacturing not solely at Tesla’s Shanghai manufacturing unit, but additionally at its California plant, which makes use of some Chinese language-made automobile elements, he mentioned. learn extra

Tesla plans to droop most manufacturing at its Shanghai plant within the first two weeks of July to work on a website improve to extend manufacturing, based on an inside memo seen by Reuters.

“The final two years have been a whole nightmare of provide chain disruptions, one factor after one other, and we’re nonetheless not out of that,” Musk mentioned.

Tesla’s overwhelming concern, he mentioned, is “How will we preserve factories working so we will pay folks and never go bankrupt?”

Musk mentioned earlier this month that he had a “tremendous unhealthy feeling” in regards to the financial system and that the corporate wanted to chop workers by about 10% and “pause all hiring worldwide.” Earlier this week, he mentioned there will likely be a ten% minimize in Tesla’s salaried workers for 3 months. learn extra

Tesla earlier this 12 months started manufacturing at factories in Berlin and Texas, each of that are central to the expansion ambitions of the main electrical automobile maker.

Musk mentioned he anticipated Tesla to begin manufacturing of its delayed Cybertruck electrical pickups in mid-2023.

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Reporting by Hyunjoo Jin in San Francisco and Joe White in Detroit Modifying by Leslie Adler and Matthew Lewis

Our requirements: the Thomson Reuters Belief Ideas.

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