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Elon Musk Says Tesla Factories Are Losing Billions Of Dollars

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Elon Musk Says Tesla Factories Are Losing Billions Of Dollars

Elon Musk has said Tesla is losing billions of dollars due to shortages and supply chain issues. 

Musk went as far as to say that factories in Berlin and Austin are ‘gigantic money furnaces’, admitting he’s concerned about being able to keep factories open without going bankrupt. 

Musk also revealed that Tesla’s Texas plant had only manufactured a ‘tiny’ amount of electric vehicles. 

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Speaking to Tesla Owners of Silicon Valley, an official club dedicated to the electric car company, Musk explained: “Both Berlin and Austin factories are gigantic money furnaces right now.”

Elon Musk has said Tesla is losing billions of dollars. Credit: Shutterstock
Elon Musk has said Tesla is losing billions of dollars. Credit: Shutterstock

Elsewhere in the interview, which was published on YouTube on Wednesday (23 June), he added: “It's really like a giant roaring sound, which is the sound of money on fire."

Musk cited electric car battery shortages, explaining there had been issues with the production of the 4680 battery.

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He also pointed to port delays in China, saying this had affected shipments. Around half of Tesla’s global deliveries come from the company’s Gigafactory in Shanghai, but last year China went into a total COVID-19 shutdown because of the country’s zero-tolerance policy for virus infections. 

Earlier this month, Insider reported that Tesla was planning to cut 10 percent of its workforce as Musk had a ‘super bad feeling’ about the economy. 

The outlet discovered 11 separate LinkedIn posts from Tesla employees claiming to have been laid off as a result of the cut, with one writing: "I am saddened to go. I truly did enjoy my job, and I am proud of the work that I've produced."

According to The Guardian, Musk said when speaking at the Qatar Economic Forum in Doha this week: “A recession is inevitable at some point. As to whether there is a recession in the near term, that is more likely than not.”

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Elsewhere, it was also reported this month that Musk had laid off staff because they ‘disagreed’ with him.

Musk blamed the losses on shortages and supply chain issues. Credit: Alamy
Musk blamed the losses on shortages and supply chain issues. Credit: Alamy

At least five SpaceX employees were allegedly sacked after circulating a letter which criticised Musk and called on company executives to create a more inclusive culture, a report by The New York Times claimed.

The letter was reportedly shared with 2,600 employees and slated Musk's recent behaviours as a 'distraction' and an 'embarrassment' to the company.

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The staff known to have had a part in writing and circulating the letter were fired for making SpaceX staff feel 'uncomfortable, intimidated and bullied', according to an email seen by the New York Times.

UNILAD has approached Musk for comment.

If you have a story you want to tell, send it to UNILAD via [email protected] 

Featured Image Credit: Shutterstock

Topics: News, Elon Musk, Money, Technology, Tesla

Aisha Nozari
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