Two Tesla factories on two continents started operations this year with great pomp, confetti flew through the air and Elon Musek’s bright smiles did not end. And cut. A few months later, the head of the carmaker and the richest man on the planet declare that the factories in Austin and Berlin are just gigantic stoves for burning money. Reason? The plants hardly produce due to a supply failure, CNBC writes.
Factories in Austin, Texas and in Berlin they are now “making billions of dollars,Musk said in an interview with the official Tesla Owners Silicon Valley fan club. Musk described both plants as “money-burning furnaces”. “The drone that comes from them is the sound of burning money,” he said.
The opening of the races was accompanied by great fame – especially in the German one, which is Tesla’s first gigafactory on the European continent. However, due to supply outages, they now hardly produce. “They have a lot of costs and almost no output. Kick production in Berlin and Austin as well get back in the saddle factory in shanghai, these are our priorities. Everything else is irrelevant, “Muska quotes the server CNBC.
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The reason for his disappointment is the outages in the supply chains, which carmakers and other sectors face throughout the duration of the coronavirus pandemic. “The last two years have been a complete nightmare, one thing after another has been missing, and we haven’t gotten out of it yet,Says Musk.
Tesla has still not completed the production of 4680 batteries to be fitted to the Model Y in Austin. Instead, the SUV wants to install the older 2170 type battery, but does not have the tools at the factory. They are stuck in a port in China. Complication alternates with complication.
“Only trying to keep the factories in operation in the last few years has been very difficult, supply disruptions have been serious, but now the situation is extremely serious,”Musk added.
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The Berlin gigafactory is a little better at it, because it is adapted for fitting cars with older types of batteries, but it also lacks many parts and production is trivial.
The problems are packing up and Tesla’s plan says that it is “going hard” lay off a tenth of employees in three months working for a fixed wage. The carmaker plans to recruit more who are paid by the hour.
Despite the problems, the carmaker’s production targets remain ambitious. In April, Musk said he intended to produce 1.5 million cars this year, although he warned that their delivery times to customers would be extended. Last year, the carmaker surprised and almost a million cars found its customers.
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