Tesla ‘s new factories in Texas and Berlin are ‘losing billions of dollars’ as they struggle to ramp up production.
Elon Musk indicates that new Tesla factoriesin Germany and the United States are “losing billions of dollars” due to battery shortages and supply interruptions in China.
The eccentric billionaire called his Tesla gigafactories in Austin and Berlin “giant furnaces of money.”
COVID-19 lockdowns in China this year have made it increasingly difficult for manufacturers, including Tesla’s factory in Shanghai, to operate.
In recent weeks, Musk has been warning of job cuts at the company.
“Both the Berlin and Austin factories are giant money furnaces right now. It’s really like a giant roar, which is the sound of money burning,” said Musk, CEO of the electric vehicle maker.
Plants are “losing billions of dollars right now. There’s a lot of spending and almost no production,” he added in an interview with Tesla Owners of Silicon Valley, a club recognized by the company.
Musk said the so-called gigafactories have been struggling to ramp up production since they opened earlier this year.
Musk this week said Tesla was planning to shed 3.5% of its global workforce after earlier saying he had a “super bad feeling” about the economy.