Musk claims that teslas' new auto factories are losing billions of dollar

Wednesday, June 22, 2022
author picture Daniel Marino
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Tesla Expands Car Production in Berlin and Austin

If you've been following the company's recent headlines‚ you've probably noticed its efforts to expand its car production in Berlin and Austin. But this expansion is not coming without major problems. First of all‚ the production line at Tesla's Austin factory is only producing a small number of cars. And those cars aren't even powered by Tesla's latest battery‚ the 4680. The company also has problems in China‚ where an outbreak of COVID-19 closed down its factory in Shanghai. Hence‚ Tesla is focusing on getting all of its factories up and running‚ and this is essential if it is to keep its promise of making cars.

By Hyunjoo Jin San Francisco (Reuters). Tesla Inc's two new factories for car manufacturing in Texas and Berlin is losing billions due to a lack of batteries and China port problems‚ Elon Musk recently stated. Right now‚ both the Austin and Berlin factories are huge money-makers. Okay? Musk stated that it sounds like a huge roaring sound. This is what Musk described in an interview in Silicon Valley with Tesla Owners Silicon Valley on May 31‚ in Austin‚ Texas. The club split its Musk interview into three sections‚ with the final one being released Wednesday. Musk stated that Tesla's Texas plant produces very few cars due to difficulties in increasing production of the new 4680 battery and because its traditional 2170 batteries remain in China. He said that the Shanghai COVID shut downs in China were extremely difficult. Tesla's Shanghai plant was affected by the shutdown‚ as well as its California facility‚ which makes some parts of vehicles made in China. Musk stated that the past two years were a nightmare in terms of supply chain disruptions. Tesla's greatest concern was‚ he stated‚ "How do we maintain factories so that we can pay workers and not go bankrupt?" Musk stated earlier in the week that Tesla would be cutting 10% salaries over three months. Musk‚ the world's wealthiest man‚ also stated that a U.S. economic recession is more probable than not. Tesla began production in Berlin and Texas earlier this year‚ which is crucial for the company's growth plans. Musk stated that he believed Tesla would begin production of the Cybertruck electric pickup trucks in 2023. This delay has resulted in Musk's prediction. Reporting by Hyunjoo Jin‚ Joe White and Leslie Adler; Editing done by Leslie Adler