Elon Musk says Tesla’s new factories in Germany and the US are “losing billions of dollars” due to battery shortages and supply disruptions in China.
The multi-billionaire also called the plants in Berlin and Austin, Texas “gigantic money furnaces”.
Covid-19 lockdowns in China this year, including in Shanghai where Tesla has a huge factory, have made it increasingly difficult for manufacturers to operate.
“Both Berlin and Austin factories are gigantic money furnaces right now. It’s really like a giant roaring sound, which is the sound of money on fire,” said Mr. Musk.
The plants are “losing billions of dollars right now. There’s a ton of expense and hardly any output,” he added in an interview. Tesla’s site in Austin currently produces a “tiny” number of cars, partly because some components for its batteries were “stuck” at a Chinese port “with no one to actually move it”, he said.
The previous week, Tesla raised the price of its whole range of cars in the US by almost 5%.
This week, Mr. Elon Musk said Tesla planned to shed 3.5% of its global workforce after earlier saying that he had a “super bad feeling” about the economy.
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