Tesla Berlin and Austin factories losing billions of dollars, Elon Musk says
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Last month on May 31, Tesla (NASDAQ:TSLA) CEO Elon Musk said in an interview with Tesla Owners Silicon Valley in Austin, Texas, that the company's "Berlin and Austin factories are gigantic money furnaces right now."
"It's really like a giant roaring sound, which is the sound of money on fire," Musk said. "Bigger than a dumpster, a dumpster's too small."
The new car factories in Texas and Berlin are "losing billions of dollars right now. There's a ton of expense and hardly any output," Musk says in the previously recorded interview with the club, which divided its interview with Musk into three parts and released the last part on Wednesday. (Interview posted here with above comments near the 8:20 mark).
In another news, TESLA (TSLA) plans to suspend most production at its Shanghai plant in the first 2 weeks of July to upgrade the site with an aim to produce 22,000 cars per week, according to an internal memo seen by Reuters.
A 2-month-long Covid lockdown in Shanghai delayed Tesla's original plan of reaching production of 8,000 Model 3s and 14,000 Model Ys per week at the Shanghai plant by mid May, 2 people familiar with the matter told Reuters previously.
Read more on stop and go production plans at Teslaâs Shanghai factory.
Earlier on Wednesday, Morgan Stanley analyst Adam Jonas reined in his price target for Tesla as softness in China and added costs augment expectations.