Elon Musk says Tesla's Berlin & Austin gigafactories are losing 'billions of dollars right now'
Musk also describes the gigafactories as gigantic money furnaces.
Elon Musk is back in the news once again, this time in regards to statements made about Tesla’s Berlin and Austin gigafactories. According to Musk, the factories are losing “billions of dollars right now” due to ongoing supply chain issues.
This stems, in part, from the COVID-19 pandemic as a recent resurgence of the virus in China resulted in a two-month lockdown in Shanghai, which is where one of Tesla’s plants is located.
That said, lockdowns aren’t the primary problem as it was reported by Reuters that Tesla plans to suspend most of its Shanghai plant’s production during the first two weeks of July in order to work on upgrades intended to increase the plant’s output.
At present, the Shanghai factory produces around 17,000 Model 3 and Model Y vehicles, with the goal behind increasing output being to bring that number up to 22,000. Ramping up production can be costly, but it sounds like it isn’t as concerningly costly as the situation with Tesla’s Berlin and Austin gigafactories.
In one part of Musk’s statement on the Berlin and Austin factories, he points out as an example that some of the tools needed for manufacturing some of Tesla’s vehicles are currently “stuck in a port in China”.
Not being out of it yet certainly seems to be the case, as Reuters reports that production at Tesla’s Shanghai factory is expect to fall by “over a third this quarter from the first three months of the year” as a result of lockdowns in China causing “deeper disruptions to output than Musk had predicted.”
For more on this, be sure to read through the full report from Reuters and CNBC. And for more on Elon Musk, also check out some of our coverage including Musk confirming upcoming Tesla (TSLA) salaried workforce cuts.
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replyMorgan Shaver posted a new article, Elon Musk says Tesla's Berlin & Austin gigafactories are losing 'billions of dollars right now'
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Prediction- Trump hands him a nice bailout when he gets back in office.
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A Tesla buyback is very unlikely. They are a capital intensive business and have no history of returning cash to shareholders.
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Yeah, but not once has it been to facilitate a buyback. If anything, it appears he is talking down expectations for the current quarter.
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I could see that happening before a share buyback.
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Board drinking
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Do you just want us to stop generating threads for front page articles?
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Sounds like we have free speech deniers in here! Cast them down to the sodomites!!!
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Cool. Solid reply.
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II think posts asking for other posts to not be made should be moderated. Why do they care so much? I’ve seen way too many talented posters be pushed away because it would make the community better but it hasn’t. Those people are pushed away. I’m not talking about anyone hateful, it just seems that most of the people that leave here are usually the most interesting ones.
I think if too many people make Musk threads and they stop getting attention, then the problem solves itself. Those people probably won’t leave, they will just get on something else. But that’s good, you need content flowing in, not out.-
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What is the problem with that? What happens because there are too many threads? You feel like you need to read one or it doesn’t interest you? I think it’s fair to tag them political. You can always filter out? Or is it something else?
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That's because one is for sure a piece of shit and other one is getting there.
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Ignore them
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