Explorer

Tesla Chief Elon Musk Expresses Bankruptcy Concerns, Says Factories Losing Billions Of Dollars

The billionaire entrepreneur blamed the Covid-19-related shutdowns in Shanghai which severely hit car production not only at Tesla's Shanghai factory, but also its California plant

Tesla’s Chief Elon Musk has expressed concerns about how to keep the factories operating and avoid bankruptcy in an interview with an official Tesla-recognised club. Musk in an interview published on Wednesday revealed that new car factories in Texas and Berlin are "losing billions of dollars" as they struggle to increase output because of a shortage of batteries and China port issues, according to Reuters.

"Both Berlin and Austin factories are gigantic money furnaces right now. Okay? It's really like a giant roaring sound, which is the sound of money on fire," Musk said with Tesla Owners of Silicon Valley in Austin, Texas, on May 31. He noted that Tesla's Texas factory produces a ‘tiny; number of cars because of challenges in boosting production of its new 4,680 batteries and as tools to make its conventional 2,170 batteries are "stuck in port in China.  "This is all going to get fixed real fast, but it requires a lot of attention," he added.

ALSO READ: 14th BRICS Summit: PM Modi To Attend Virtual Meet Today At Invitation Of Chinese President

Sharing the biggest concern he said, "How do we keep the factories operating so we can pay people and not go bankrupt?" The world’s billionaire entrepreneur blamed the Covid-19-related shutdowns in Shanghai which had severely hit car production not only at Tesla's Shanghai factory, but also at its California plant, which uses some vehicle parts made in China, he added.

In fact in the coming months, Tesla intends to suspend most production at its Shanghai plant to work on an upgrade of the site to boost output, according to an internal memo seen by Reuters.

"The past two years have been an absolute nightmare of supply chain interruptions, one thing after another, and we're not out of it yet," Musk said.

Earlier, Musk had said that he had a ‘super bad feeling’ about the economy and that the company required to cut staff by about 10 per cent besides pausing all hiring globally. Earlier this week, he said a 10 per cent cut in salaried staff at Tesla will occur over three months.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headline

Another Blow To Congress As I-T Dept Serves Rs 1,700-Crore Notice Ahead Of Lok Sabha Elections: Report
Another Blow To Congress As I-T Dept Serves Rs 1,700-Crore Notice Ahead Of Lok Sabha Elections
'Kejriwal Ko Ashirwaad': Wife Sunita Kickstarts WhatsApp Campaign For Delhi CM
'Kejriwal Ko Ashirwaad': Wife Sunita Kickstarts WhatsApp Campaign For Delhi CM
Lok Sabha Polls 2024: JD(S) Announces Candidates For 3 Seats; HDK To Contest From Mandya
Lok Sabha Polls 2024: JD(S) Announces Candidates For 3 Seats; HDK To Contest From Mandya
Arvind Kejriwal Arrest: UN Steps In As Case Against Delhi CM Heats Up Ahead Of Lok Sabha Elections
Arvind Kejriwal Arrest: UN Steps In As Case Against Delhi CM Heats Up Ahead Of Lok Sabha Elections
Advertisement
for smartphones
and tablets

Videos

ABP SHIKHAR SAMMELAN 2024: POK Will Always Remain An Integral Part Of India, Says Rajnath SinghABP Shikar Sammelan 2024: Rift between Akali Dal-BJP due to farmers issues? | Rajnath SinghABP Shikhar Sammelan 2024:Rajnath Singh takes a dig at Kejriwal over his arrest in Delhi Liquor CaseABP SHIKHAR SAMMELAN 2024: Rajnath Singh Talks About Border Issues In Arunachal Pradesh | ABP News

Photogallery

Embed widget