“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 vehicle factories in Texas and Berlin are losing “billions of dollars right now” as supply chain interruptions obstruct the electrical automobile giant’s capability to increase production, president Elon Musk stated in an interview released today.
“Both Berlin and Austin factories are gigantic money furnaces right now. OK? It should be like a giant roaring sound which is the sound of money on fire,” Musk stated in the interview with Tesla Owners Silicon Valley, which was taped on May 30 and released Wednesday.
“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 the Texas factory is “losing insane money” at the minute due to the fact that of difficulties increase production of cars and trucks with the so-called 4680 battery, Tesla’s newest innovation. Meanwhile, the tools to make cars and trucks for the conventional 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 renewal of Covid in current weeks caused lockdowns in significant cities such as Shanghai, where Tesla’s plant in the nation lies. Tesla prepares to suspend the majority of the production at that factory in the very first 2 weeks of July to perform upgrades, Reuters reported Wednesday.
Since the interview, Musk has actually revealed strategies to decrease Tesla’s employed labor force by 10% in the next 3 months. But the business prepares to increase the variety of per hour staff members. Tesla’s layoffs would impact around 3.5% of its total labor force, Musk stated today.
Despite the supply chain concerns, Tesla is still intending to produce 1.5 million cars and trucks this year, Musk stated in April, though he warned that consumers deal with long haul times for their automobiles.