Tesla’s mega-factories, Elon Musk’s “giant money ovens”, are losing billions of dollars

According to Elon Musk, Tesla’s mega-factories near Berlin in Germany and in Austin in the US state of Texas are losing “billions of dollars” because they cannot produce enough. The senior executive of the American electric car manufacturer describes the sites as “gigantic money ovens”.

Mr. Musk made the claims during a video interview with the Tesla Owners of Silicon Valley fan club, which was released on Wednesday. Due to supply chain issues in the auto industry, Tesla’s two giant new factories are currently at a “multi-billion dollar” loss. “There are massive costs and almost no return”he said.

“The last two years have been an absolute nightmare in terms of supply chain disruptions. There has been one thing after another. And we haven’t gotten rid of it yet”said the boss of Tesla, who also referred to the problems of the Shanghai factory. “Containments in China have been very, very difficult”he explained.

Lower production also affected volumes in the United States and Germany. “There should be a lot more cars coming off the line”, Musk said. But it takes a lot of effort and attention. “Getting Berlin and Austin back to working order and getting Shanghai back on track is our main concern. Everything else is futile.”

On Tuesday, Tesla announced that it would cut 3 to 3.5% of its jobs in the coming months. Among white-collar workers, about one in ten jobs would be lost, while the number of factory workers, on the other hand, is expected to increase in the long term. At the start of the year, Tesla employed nearly 100,000 people.

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