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Musk says Tesla Berlin and Austin factories dropping billions of {dollars} – EAST AUTO NEWS

Musk says Tesla Berlin and Austin factories dropping billions of {dollars}


“The previous two years have been a completely nightmare of provide chain disruptions, one factor after one other, and we’re not out of it but,” Tesla CEO Elon Musk stated.

Patrick T. Fallon | Reuters

Tesla’s latest automobile factories in Texas and Berlin are dropping “billions of {dollars} proper now” as provide chain disruptions hamper the electrical automobile large’s capability to ramp up manufacturing, chief govt Elon Musk stated in an interview revealed Wednesday.

“Each Berlin and Austin factories are gigantic cash furnaces proper now. Okay? It ought to be like an enormous roaring sound which is the sound of cash on fireplace,” Musk stated within the interview with Tesla House owners Silicon Valley, which was recorded on Might 30.

“Berlin and Austin are dropping billions of {dollars} proper now as a result of there is a ton of expense and hardly any output. Getting Berlin and Austin practical and getting Shanghai again within the saddle absolutely are overwhelmingly our issues. Every part else is a really small factor mainly.”

Musk stated that the Texas manufacturing unit is “dropping insane cash” for the time being due to troubles ramping up manufacturing of vehicles with the so-called 4680 battery, Tesla’s newest know-how. In the meantime, the instruments to make vehicles for the normal 2170 batteries are “caught in a port in China.”

“Simply been attempting to maintain the factories working the final couple years has been a really tough factor, like provide chain interruptions have been extreme, like extraordinarily extreme,” Musk stated.

“The previous two years have been a completely nightmare of provide chain disruptions, one factor after one other, and we’re not out of it but.”

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

For the reason that interview, Musk has introduced plans to cut back Tesla’s salaried workforce by 10% within the subsequent three months. However the firm plans to extend the variety of hourly workers. Tesla’s layoffs would have an effect on round 3.5% of its general workforce, Musk stated this week.

Regardless of the provision chain points, Tesla remains to be aiming to provide 1.5 million vehicles this yr, Musk stated in April, although he cautioned that clients face lengthy wait occasions for his or her autos.

Musk says Tesla Berlin and Austin factories dropping billions of {dollars} – EAST AUTO NEWS
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