Musk Says New Tesla (TSLA) Factories Lose Billions of Dollars Ahead of Ramp Up
- Wall Street mints big gains to end strong week
- JP Morgan's Kolanovic Predicts No Recession and Next Week's Rebalancing Could Drive Stocks Up 7%
- U.S. Supreme Court overturns Roe v. Wade, ends constitutional right to abortion
- FedEx (FDX) Gains on Solid FY23 Outlook, Analysts Mostly Bulled Up Into Next Week's Investors Day
- Get Ready for a 10% Rally in S&P 500
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
According to Bloomberg News, Elon Musk stated that Tesla, Inc. (NASDAQ: TSLA) is losing “billions of dollars” from its new plants in Germany and Texas as it tries to ramp up production, in a video interview with Tesla Owners of Silicon Valley posted online Wednesday.
Earlier this month, Musk announced its decision to cut costs by laying off 10% of its salaried workers over the next three months, which represents about 3.5% of its global workforce.
In May 31 interview, Musk said that the company has struggled to quickly increase production in the Austin plant of Model Y SUVs that use the new 4680 cells and structurally integrated battery pack. Thus, the company decided it would also make Model Y SUVs with the older 2170 cells in Austin to keep up with the high demand for its cars, as noted in its April letter to shareholders. The struggles in getting the Austin and Berlin factories up and running were also a result of the company dealing with Covid-related lockdowns at its Shanghai plant.
According to Musk, the problems in the Austin factory are all going to get fixed real fast, but it requires a lot of attention and effort. Berlin factory is in a “slightly better position” as the company outfitted it to build cars with its 2170 cells.
By Davit Kirakosyan
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla's (TSLA) PT Cut at Credit Suisse on Short-Term Issues, but 'Long-Term Bull Thesis Intact'
- Active options: TSLA AAPL AMZN META AMD NVDA BAC
- Musk Details Tesla (TSLA) Staff Cuts
Create E-mail Alert Related CategoriesHot List, Management Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!