Elon Musk hit by Tesla supply chain crisis

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The impact of supply chain problems in China on Tesla’s new battery factories in the US and Germany means they are losing billions of dollars, according to the company’s multi-billionaire founder.

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Elon Musk said in an interview that “it’s really like the sound of a giant roar, the sound of money fires.” Speaking to Tesla owners of Silicon Valley, a club for owners of the company’s iconic electric cars, Musk said: “Both the Berlin and Austin factories are huge money furnaces right now.”

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The entrepreneur blamed the Covid-related shutdowns in China, specifically pointing to Shanghai’s cargo hub, which he said was “very, very difficult” for Tesla, with components stuck in port producing at so-called gigafactories. to limit According to a Newswire report, the company plans to use the downtime to update facilities to get closer to its target of producing around 22,000 cars a week.

Tesla warned this week that it plans to lay off 3.5% of its global workforce after Musk separately called it a “super bad feeling” about the economy. He termed the supply crunch as the biggest threat to the company’s growth.

“Overwhelmingly, our concern is how do we keep factories running so that we can pay people and not go bankrupt?” They said.

Musk said he expects the problems at the Austin plant to be “fixed really fast”, but warned that the process “requires a lot of attention and that” it would take this factory to produce high volumes. Will try more to make. In the first place.” He said the number of cars it was currently producing was “small.”

Difficulties were not as severe at the Berlin factory, with Musk saying it was in “slightly better condition”. The German factory uses a more conventional battery, the “2170”, while the Austin plant uses the more up-to-date “4680” model, which is more aware of supply chain problems.

Musk, one of the world’s richest men, is neither a stranger to controversy nor to making news. His $44bn bid for Twitter has been mired in delays related to the number of active users on the social networking site. There is also doubt about how he will bid.

The entrepreneur said in February 2021 that Tesla would accept bitcoin as payment for its cars before withdrawing the policy in May.

Credit: www.standard.co.uk /

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