Musk says Tesla’s new car factories ‘losing billions of dollars’

Tesla Inc's 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. The post Musk says Tesla’s new car factories ‘losing billions of dollars’ appeared first on SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader..

Musk says Tesla’s new car factories ‘losing billions of dollars’

Tesla Inc’s 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.
Tesla earlier this year started production at the factories in Berlin and Texas, both of which are critical to the growth ambitions of the top electric car maker.

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.”

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.

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.

Musk said he expected Tesla would start production of its Cybertruck electric pickup trucks, which has been delayed, in mid-2023.

The post Musk says Tesla’s new car factories ‘losing billions of dollars’ appeared first on SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader..