AUSTIN, Texas — The new Tesla plant in Austin, Texas, opened recently with a lavish party and a great deal of hoopla, but according to Tesla CEO Elon Musk, so far it’s hemorrhaging money. It’s the same deal at a recently opened plant in Berlin, Germany, Musk said.
In an interview with Tesla Owners Silicon Valley released Wednesday, his billion-dollar empire was shown to have a crack, Musk commenting that electric-car-battery shortages and supply chain issues are causing the loss of billions of dollars.
“Gigantic money furnaces” is how Musk described the new Tesla factories in Germany and Texas in the third part of a YouTube video interview series that started May 31. “It’s really like a giant roaring sound, which is the sound of money on fire,” said Musk.
Musk is looking to figure out a way to avoid bankruptcy and maintain operations at the new Tesla factories, but in Austin vehicle production is currently scant. He also stated problems with the 4680 battery manufacture and shipping delays in China.
Adding to the economic baggage that has weighed Tesla down were China’s stringent COVID regulations implemented earlier this year. Shanghai was completely closed off due to the country’s zero-tolerance policy for infections.
In an interview with Bloomberg at the Qatar Economic Forum, Musk said Tesla’s most prominent setback is raw materials and upping production. Despite production constraints, demand for Teslas has not faltered, Musk asserting, “…we’re increasing production capacity as fast as humanly possible.”