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Musk says Tesla's factories in Berlin and Texas are 'gigantic cash furnaces' ImpRead

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Musk says Tesla’s factories in Berlin and Texas are ‘gigantic cash furnaces’

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“The past two years have been an absolutely nightmare of supply chain disruptions, one thing after another, and we are not out of it yet,” Tesla CEO Elon Musk stated.

Patrick T. Fallon | Reuters

Tesla’s latest automotive factories in Texas and Berlin are shedding “billions of dollars right now” as provide chain disruptions hamper the electrical automobile big’s potential to ramp up manufacturing, chief government Elon Musk stated in an interview printed Wednesday.

“Both Berlin and Austin factories are gigantic money furnaces right now. Okay? It should be like a giant roaring sound which is the sound of money on fire,” Musk stated within the interview with Tesla Owners Silicon Valley, which was recorded on May 30.

“Berlin and Austin are losing billions of dollars right now because there’s a ton of expense and hardly any output. Getting Berlin and Austin functional and getting Shanghai back in the saddle fully are overwhelmingly our concerns. Everything else is a very small thing basically.”

Musk stated that the Texas manufacturing facility is “losing insane money” in the meanwhile due to troubles ramping up manufacturing of vehicles with the so-called 4680 battery, Tesla’s newest know-how. Meanwhile, the instruments to make vehicles for the standard 2170 batteries are “stuck in a port in China.”

“Just been trying to keep the factories operating the last couple years has been a very difficult thing, like supply chain interruptions have been severe, like extremely severe,” Musk stated.

“The past two years have been an absolutely nightmare of supply chain disruptions, one thing after another, and we are not out of it yet.”

In China, a resurgence of Covid in latest weeks led to lockdowns in main cities reminiscent of Shanghai, the place Tesla’s plant within the nation is. Tesla plans to droop many of the manufacturing at that manufacturing facility within the first two weeks of July to hold out upgrades, Reuters reported on Wednesday.

Since the interview, Musk has introduced plans to cut back Tesla’s salaried workforce by 10% within the subsequent three months. But the corporate plans to extend the variety of hourly staff. Tesla’s layoffs would have an effect on round 3.5% of its total workforce, Musk stated this week.

Despite the availability chain points, Tesla remains to be aiming to supply 1.5 million vehicles this yr, Musk stated in April, although he cautioned that clients face lengthy wait instances for his or her autos.

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