Germany-Texas plant proving to be a loss-making deal for Elon Musk, billions of dollars sunk so far

To increase production, Tesla’s plants built in Germany and Texas are proving to be a loss-making deal. In a video interview with Tesla Owners of Silicon Valley, Elon Musk has said that Tesla’s factories in Berlin and Austin are proving to be a loss-making deal. The company is facing losses of billions of dollars in these plants.

Elon Musk said that these factories are proving to be an expensive deal due to low output and problems in the supply chain. Especially the factory in Berlin, Germany is also facing union and environmental problems.

What did Musk say?

Musk made this statement about his factories in front of the Silicon Valley Fan Club. He said that the company is facing a loss of billions of dollars on both these production sites. This loss is being caused to them due to high cost, low output and supply chain problems. The company started both the plants earlier this year itself. Musk has said that our priority is to make factories run better so that we can pay the salaries of the employees and avoid bankruptcy.

In his interview on May 31, Musk had earlier said that his priority is to increase the production of Model Y SUVs. New 4680 cells have been used in this car, which is present in the integrated battery pack of the car.

To meet high demand for its cars, the company said in its April 1 letter to shareholders that it would build a Model Y SUV in Austin along with the older 2170 cell, but Musk said the tools involved would be supplied from China. is stuck. Which is proving to be a big problem.

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