Elon Musk says Tesla's new factories are 'gigantic money furnaces' that are losing billions of dollars from EV battery shortages and supply-chain snags

Yasin Ozturk/Anadolu Agency via Getty Images
Elon Musk said Tesla is losing billions of dollars at its new factories due to supply chain issues.
The CEO has complained about supply chain bottlenecks in the past.
Musk is one of many auto industry executives who have warned that shortages could further damage the industry.
Elon Musk warned in a recent interview that electric car battery shortages and supply chain problems are costing Tesla billions of dollars.
"Both the factories in Berlin and Austin are huge money-making furnaces right now," Musk said in an interview with Tesla Owners Silicon Valley posted to YouTube on Wednesday. "It's really like a huge roar, that's the sound of burning money."
The richest man in the world said during the interview that one of his biggest concerns is keeping Tesla factories running without going bankrupt. Tesla recently opened factories in Texas and Berlin, Germany. However, the company's largest manufacturing facility is in Fremont, California.
Last week, Musk said he plans to cut Tesla's workforce by 10%. Insider's Isobel Asher Hamilton reported that several employees have already been laid off as a result of the edict. The decision came after Musk said the US is likely in a recession that could last 18 months.
In the recent interview with Tesla Owners Silicon Valley, released as the third in a series of YouTube videos from a May 31 interview, the Tesla CEO said the company's Texas plant is only a "tiny" number of vehicles could produce . He cited challenges in the production of the 4680 battery as well as port delays in China that have impacted shipments of critical goods. Earlier this year, Shanghai went through a full COVID shutdown due to the country's zero-tolerance policy for coronavirus infections.
Musk has complained about supply chain issues in the past. Last year, the billionaire said Tesla was facing "super crazy supply chain shortages." Earlier this week, the CEO told Bloomberg that supply chain issues have become Tesla's biggest hurdle.
"Our limitations are much more in raw materials and the ability to increase production," Musk said in an interview with Bloomberg at the Qatar Economic Forum. “As anyone who has attempted to order a Tesla knows, demand for our cars is extremely high and the waiting list is long. This is not intentional and we are increasing production capacity as soon as possible,” he added.
Tesla is one of many automakers voicing concerns about supply chain deficiencies. In April, Rivian CEO RJ Scaringe warned that a shortage of batteries for electric cars could soon devastate the auto industry even more than the shortage of computer chips. Last year, Ford CEO Jim Farley said the chip shortage caused the "biggest supply shock" he had ever seen.
Read the original article on Business Insider

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