SAN FRANCISCO — Tesla’s new car factories in Texas and Berlin are “getting rid of billions of bucks” as they struggle to maximize manufacturing due to the fact of a lack of batteries and China port troubles, Main Govt Elon Musk said in an interview printed on Wednesday.
“The two Berlin and Austin factories are gigantic dollars furnaces ideal now. Alright? It really is truly like a large roaring sound, which is the audio of money on hearth,” Musk explained in an job interview with Tesla Homeowners of Silicon Valley, an formal Tesla-identified club, in Austin, Texas, on May well 31.
The club divided its interview with Musk into 3 pieces, the last of which was produced on Wednesday.
Musk claimed Tesla’s Texas factory provides a “little” selection of autos due to the fact of troubles in boosting output of its new “4680” batteries and as instruments to make its typical 2170 batteries are “trapped in port in China.” “This is all likely to get mounted real rapid, but it requires a good deal of consideration,” he reported.
He claimed its Berlin manufacturing unit is in a “somewhat far better placement” since it started off with utilizing the regular 2170 batteries for vehicles developed there.
Looking for TO ‘NOT GO BANKRUPT’
He said the COVID-19-related shutdowns in Shanghai “were being incredibly, pretty tricky.” The shutdown influenced car generation not only at Tesla’s Shanghai factory, but also at its California plant, which works by using some car or truck pieces made in China, he claimed.
Tesla options to suspend most generation at its Shanghai plant in the very first two months of July to do the job on an up grade of the web page to increase output, according to an inner memo witnessed by Reuters.
“The previous two years have been an complete nightmare of source chain interruptions, a single point immediately after a different, and we’re not out of it still,” Musk claimed.
Tesla’s mind-boggling concern, he stated, is “How do we preserve the factories working so we can pay persons and not go bankrupt?”
Musk reported early this thirty day period he had a “tremendous lousy sensation” about the economic climate and that the organization wanted to lower staff members by about 10% and “pause all using the services of throughout the world.” Before this week, he said a 10% slice in salaried staff at Tesla will take place over 3 months.
Tesla previously this yr started off generation at the factories in Berlin and Texas, both equally of which are significant to the progress ambitions of the top electric automobile maker.
Musk explained he predicted Tesla would start output of its Cybertruck electric pickup vans, which has been delayed, in mid-2023.
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