Tesla factories lose billions: Musk: Brandenburg and Texas are “giant money incinerators”

Tesla factories lose billions
Musk: Brandenburg and Texas are “giant money incinerators”

Tesla boss Musk recently warned of an economic downturn and announced job cuts. In an interview, he now recounts how much the past two years have weighed on the electric car maker. Especially for Grünheide and Texas he finds clear words.

According to CEO Elon Musk, Tesla’s new electric car factories in Grünheide near Berlin and Austin in the US state of Texas are currently losing “billions of dollars”. In a published video interview, Musk described the sites as “giant money incinerators”.

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In conversation with the Tesla owners fan club of Silicon Valley, he called the past two years an “absolute nightmare” regarding supply chain problems in the auto industry. Tesla boss warned: “We are not done yet.” Now it’s about keeping the company running so that employees keep getting paid and the group doesn’t go bankrupt.

While high start-up costs and losses are relatively normal for new plants like Grünheide and Austin in the start-up phase when starting production, Tesla also faced challenges with its Shanghai plant. “The Covid closures in China have been very, very difficult to say the least,” Musk said. The interview was conducted on May 31, but the part with the most recent statements has only now been broadcast on the Internet. Musk had recently warned repeatedly of an economic downturn and announced job cuts at Tesla.

The electric car maker will cut 3 to 3.5% of its jobs in the coming months, Musk clarified after mixed reports. About every tenth jobs among employees will be lost, while the number of workers will increase in the long run. At the beginning of the year, Tesla had nearly 100,000 employees.

The Tesla boss had already internally briefed on the plans in early June. In an e-mail available to the Reuters news agency, he justified this with a “super bad feeling” about economic development. A recession is possible in the near future, he said now. “Not sure, but it seems more likely.”

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