According to CEO Elon Musk, Tesla’s new car plants in Germany and the US state of Texas are currently losing “billions of dollars”. Musk described the factories in Grünheide near Berlin and in Austin in a video interview published Wednesday as “giant money-burning furnaces”.
In last month’s conversation with the Tesla Owners of Silicon Valley fan club, Musk described the past two years as an “absolute nightmare” given the ongoing supply chain problems in the auto industry. The Tesla boss also warned: “We’re not over it yet.”
According to Musk, Tesla is about keeping the company going so that the employees continue to be paid and the group does not go bankrupt. While high start-up costs and losses are relatively common for new plants like Grünheide and Austin in the startup phase as production ramps up, Tesla also faced challenges with its Shanghai plant. “The Covid shutdowns in China have been very, very difficult to say the least,” Musk said. The interview took place on May 31, but the part with the most recent statements has only now been broadcast on the internet.
Musk had recently repeatedly warned of an economic downturn and announced job cuts at Tesla. The electric car manufacturer will cut three to 3.5 percent of its jobs in the coming months, Musk clarified on Tuesday after conflicting reports. About every tenth job among workers is lost, while the number of factory workers will increase over time.
At the beginning of the year, Tesla had nearly 100,000 employees. In some cases, Tesla built employee jobs too quickly, Musk said via video link at the Qatar Economic Forum conference.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
