Tesla’s new car factories losing money says Musk

Tesla’s new car factories in Berlin and Texas are reportedly “losing billions of dollars” as they struggle to increase production due to worldwide supply chain shortages, according to Tesla CEO Elon Musk.

In an interview with Tesla Owners of Silicon Valley, Musk said, “Both Berlin and Austin factories are gigantic money furnaces right now.”

The Texas factory is producing a “tiny” number of cars due to challenges with boosting production of its new batteries. To compound the issue, tools needed to make its conventional batteries are reportedly stuck in a Chinese port.

Musk says the Berlin factory is in a “slightly better position” due to its use of the conventional batteries for vehicle production.

Shanghai’s COVID-19-related shutdown created difficulty for all Tesla factories including its California plant which uses vehicle parts made in China. The biggest impact was felt at the Shanghai facility with workers having to sleep on the premises to reduce worker movements in the city.

“The past two years have been an absolute nightmare of supply chain interruptions, one thing after another, and we’re not out of it yet,” Musk said.

Musk stated earlier this month that Tesla would cutting salaried staff by 10 per cent, and stop hiring worldwide.

How this will impact the New Zealand market is unknown but will likely result in reduced vehicle availability.