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Elon Musk says Tesla lost billions of dollars in Texas and Berlin units, blames chip shortages

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Chief executive Elon Musk recently said Tesla’s new car factories in Texas and Berlin are losing “billions of dollars” as they struggle to ramp up production due to battery shortages and China port issues.

“Both the Berlin and Austin factories are huge money furnaces right now,” Musk said in an interview with Tesla Owners Silicon Valley, an official Tesla-affiliated club. OK? It’s really like a giant roaring sound, which is money on fire. is the voice of.” May 31 in Austin, Texas.

The club split its interview with Musk into three parts, the last of which was released on Wednesday.

Musk said Tesla’s Texas factory produces “smaller” cars because of challenges in ramping up production of its new “4680” battery and that equipment to make its traditional 2170 battery is “stuck in port in China.”

The Shanghai COVID shutdown in China was “very, very difficult,” he said. The shutdown affected car production not only at Tesla’s Shanghai factory, but also at its California plant, which uses some vehicle parts made in China.

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

Tesla’s extreme concern, he said, “how do we keep factories running so we can pay people and not go bankrupt?”

Musk said earlier this week that Tesla would cut 10 percent of salaried employees in three months. The world’s richest man also said the likelihood of a US recession was not high.

Tesla began production earlier this year at factories in Berlin and Texas, both crucial to the top electric carmaker’s growth ambitions.

Musk said he expects Tesla to begin production of its Cybertruck electric pickup trucks, which have been delayed to mid-2023.

© Thomson Reuters 2022


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