In an interview with Tesla Owners of Silicon Valley, Musk said the company’s new car factories in Texas and Berlin are “losing billions of dollars.”
According to Musk, supply chain problems and COVID-19 restrictions have caused the company to struggle to increase production.
Musk explained that Tesla’s Texas factory only makes a “tiny” number of cars because of challenges in boosting production of its new “4680” batteries. Musk explained that an urgent solution is needed as the problem is now complicated as tools to manufacture its conventional 2170 batteries are “stuck in ports in China.”
Tesla’s Berlin factory is in a “slightly better position” since it began using the traditional 2170 batteries for car production, but the Shanghai factory has suffered a massive drop in production that has affected the plant in California, he said.
Tesla started car production in Berlin and Texas at the beginning of the year. Due to the numerous challenges, the company will suspend most of the production at its Shanghai plant in the first two weeks of July to work on upgrading the site to increase production.
The sources for this piece include an article in Reuters.