Tesla's new factory costs billions of dollars, says Musk
Written byTimes Magazine
Elon Musk said Tesla's new factories in Germany and the United States would cost "billions of dollars" due to battery shortages and supply disruptions in China.
The multi-billionaire also referred to Berlin and Austin, Texas factories as "big money ovens."
The Covid-19 lockdown in China this year, including in Shanghai, where Tesla has a large factory, has made life for manufacturers even more difficult.
In recent weeks, Musk has warned about layoffs at the company.
"The Berlin and Austin factories are big blast furnaces for the money right now. So it's really like a big roar, which is the sound of money burning," said Musk, CEO of the electric vehicle maker.
"Factories are losing billions of dollars now. There's a lot of costs and almost no production," he added in an interview with Tesla Owners in Silicon Valley, a respected club. Musk said the so-called Giga factory had struggled to ramp up production since it opened earlier this year.
Tesla's Austin site currently manufactures a "small" number of cars, in part because some of the components for its batteries are "stuck" in a Chinese port "with no one moving them," he said. Musk said the so-called Giga factory had struggled to ramp up production since it opened earlier this year.
Tesla's Austin site currently manufactures a "small" number of cars, in part because some of the components for its batteries are "stuck" in a Chinese port "with no one moving them," he said.
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