The new Tesla factories in Brandenburg and Texas are losing billions

T.Esla’s new electric car factories in Grünheide near Berlin and Austin in the US state of Texas are currently losing “billions of dollars,” according to CEO Elon Musk. Musk described the sites as “giant money incinerators” in a video interview released Wednesday. In an interview with Tesla Owners of Silicon Valley fan club, he called the past two years an “absolute nightmare” regarding supply chain problems in the automotive 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 percent of its jobs in the coming months, Musk clarified on Tuesday 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.

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