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Musk Says New Tesla Factories Lose Billions of Dollars Ahead of Ramp Up

Stock Markets Jun 22, 2022 05:19PM ET
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© Reuters Musk Says New Tesla (TSLA) Factories Lose Billions of Dollars Ahead of Ramp Up

By Davit Kirakosyan

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 the 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. The Berlin factory is in a “slightly better position” as the company outfitted it to build cars with its 2170 cells.

Musk Says New Tesla Factories Lose Billions of Dollars Ahead of Ramp Up
 

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Comments (4)
Bett Albern
Bett Albern Jun 22, 2022 9:10PM ET
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The Markets are going to tank!  Take it to the bank.  Go to cash and I mean only the Dollar and the Swiss Frank.
jeanfrancois martin
jeanfrancois martin Jun 22, 2022 9:10PM ET
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under the matress;)
Ed Glass
EddieG Jun 22, 2022 8:32PM ET
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Tried of those kick the ladder Republicans.
El Mos mos
El Mos mos Jun 22, 2022 6:27PM ET
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He is a success, but not to his current status, he made that extra portion off the markets not off core business. Yes his trustometer is at an alarming level. wtph is he doing thinking to buy computer codes (twtr) for 50+ billion, while he can very easily create an even better one with at max two, do u know what two billion is. or he can support or buy a startup. bluffing all the way, we get easily fooled by such faces as well.
Jan Buyle
Jan Buyle Jun 22, 2022 5:35PM ET
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Don't trust him for an inch... he manipulates the market full time..
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James Long
FauxNews Jun 22, 2022 5:35PM ET
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Musk, like many so called self made business gurus, have received taxpayer subsidies. He'll likely beg for more to cover his losses.
Santosh Oak
Santosh Oak Jun 22, 2022 5:35PM ET
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Yes agreed. He keeps manipulating TO HIS ADVANTAGE, in effect robbing others. THIS time he might crash the share price of Tesla to surprise his detractors. Twitter is already entangled in Musk's net.
David Krajnik
David Krajnik Jun 22, 2022 5:35PM ET
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Whoever thinks biden is doing a good job. Your horribly wrong .. Now ruining our economy, opening the flood gates at the boarder, and shows he everyday he is a absolute buffoon that HATES Americans and America.. He does love China and Russia . I would like to see Musk be president. He would understand not to eliminate gas and disel and make sure the fake news will stop and all multi media will be the truth instaid of lies.
Robert Cox
Robert Cox Jun 22, 2022 5:35PM ET
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Hey Comrade! Maybe he could run with Trump as his VP. Oh wait! Musk wasn't born in the US so he can't be president.
G D
G D Jun 22, 2022 5:35PM ET
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We don't like Biden, doesn't mean we like Republican alternatives either. ******liberals don't like their own party, it's just voting for the lesser of two evils.
 
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