Elon Masks says the new Tesla car plant is losing billions of dollars, calling it a “money oven.”

Tesla Inc. New car factories in Texas and Berlin are “losing billions of dollars” as they find it difficult to increase production due to a shortage of batteries and port problems in China, CEO Elona Mask said in a statement. Interview published on Wednesday.

“The factories in Berlin and Austin now have huge money ovens. OK GOOD ? It’s really like a huge roar, the sound of burning money, “Musk said in an interview with Tesla Owners of Silicon Valley, the official Tesla-recognized club in Austin, Australia.

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

Musk said Tesla’s Texas plant produced a “tiny” number of cars because it was struggling to increase production of its new 4680 batteries and because the tools needed to produce its conventional 2170 batteries were “stuck in a Chinese port.” “It will all be resolved very quickly, but it requires a lot of attention,” he said.

He said his Berlin plant was in “slightly better condition” as it began using traditional 2170 batteries for the cars it produced.


He said COVID-19 closures in Shanghai “have been very, very difficult”. He said the suspension affected car production not only at Tesla’s Shanghai plant, but also at its California plant, which uses some parts of Chinese-made vehicles.

Tesla plans to suspend most production at its Shanghai plant in the first two weeks of July to work on upgrading the site to increase production, Reuters said in an internal note.

“The last two years have been an absolute nightmare of supply chain disruption, one thing after another, and we’re not out of it yet,” Musk said.

He said Tesla’s main problem was “how to run factories so we can pay people and not go bankrupt”.

Musk said this month that he has a “very bad feeling” about the economy and that the company needs to cut staff by about 10% and “stop hiring around the world”. Earlier this week, he said Tesla’s workforce would be cut by 10% in three months.

Earlier this year, Tesla launched production at its plants in Berlin and Texas, both of which are key growth targets for the leading electric car manufacturer.

Musk said he expects Tesla to begin production of its delayed Cybertruck electric pickup in mid-2023.

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Georgie Collins

"Falls down a lot. Writer. Passionate alcohol maven. Future teen idol. Hardcore music practitioner. Food fanatic. Devoted travel fan."

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