Tesla's newest car factories in Texas and Berlin are losing "billions of dollars right now" as supply chain disruptions hinder the electric vehicle giant's ability to ramp up production, CEO Elon Musk said in an interview published Wednesday.
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"Berlin and Austin are losing billions of dollars right now because spending is running out and we have no production at all," Musk said in the interview with Tesla Owners Silicon Valley, which was recorded on May 30.
Musk said the Texas factory is “losing a ton of money” right now due to issues ramping up production of cars with the so-called 4680 battery, Tesla’s latest technology. Meanwhile, the tooling to build cars for the traditional 2170 batteries is “stuck in a port in China.”
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"Trying to keep factories running over the last two years has been very difficult, as the supply chain disruptions have been extremely severe," Musk said.
"The last two years have been an absolute nightmare of supply chain disruptions , one after another, and we haven't escaped it yet."
In China, a resurgence of Covid-19 in recent weeks has led to lockdowns in major cities such as Shanghai, where Tesla's factory in the country is located. Tesla plans to suspend most production at that factory in the first two weeks of July to carry out upgrades, Reuters reported on Wednesday.
After the interview, Musk announced plans to reduce Tesla's salaried workforce by 10% over the next three months. Tesla's layoffs will affect about 3.5% of its total workforce , Musk said this week.
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Despite supply chain problems, Tesla still aims to produce 1.5 million cars this year, Musk said in April, though he warned that customers are facing long wait times for their vehicles.
Information source: cnbc.com
