new factories would be ‘gigantic money ovens’, says Elon Musk

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(Boursier.com) — You’re here shows little change before the stock market on Wall Street on Thursday. However, Elon Musk’s latest confidences about the activity of the electric vehicle manufacturer are enough to make people shudder! New Tesla factories in Germany and Texas would lose billions of dollars as a result, according to Bloomberg, which reports the CEO’s comments to the Tesla Owners of Silicon Valley club. In this interview, which took place on May 31, but was only published yesterday, Musk even said that the Berlin and Austin factories are currently “gigantic money ovens”.

Musk added that Tesla had struggled to quickly ramp up production of Model Ys in Austin, vehicles that use the new 4680 cells and structurally integrated battery. Even though everything should be fixed very quickly, it requires a lot of attention, and it will take more effort to bring this factory to high volume production than it took to build it in the first place…

Musk noted that Berlin was in a slightly better position, with Tesla having outfitted it to build cars with 2170 cells, but the major concern is how to keep factories running “so people can get paid and people can get paid.” ‘company does not go bankrupt’!

According to Musk, the Covid shutdowns in China have been “very, very difficult to say the least”, although the article notes that Tesla has more than tripled production at its factory in China since the interview took place.

This interview was done before Musk’s comments about the necessary workforce reductions. In early June, the businessman warned of his bad feeling about the economy and called for a hiring freeze around the world.

Speaking a little more recently to Bloomberg, the group’s managing director, who had previously announced his intention to reduce the workforce by 10%, clarified his intentions. Tesla, which is currently raising its prices to pass on cost inflation, is expected to cut its salaried workforce by 10% over the next three months, according to Musk. The cuts would equate to about a 3-3.5% reduction in the company’s total net headcount, Musk said. “We have grown very quickly on the side of employees”, noted the billionaire, who therefore intends to reduce the sail in this uncertain economic context.


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