Check out why Elon Musk calls new Tesla plants “money furnaces”

Tesla CEO Elon Musk recently hinted at cutting the salaried workforce by 10 percent in the next 3 months. Since then Twitter has been flooded with tweets showing anger and disappointment.  Now, Elon Musk says Tesla’s new factories in Germany and the US are losing billions of dollars and this statement has increased the difficulties of employees.

The entrepreneur said that due to the shortage of batteries and supply disruptions in China, the company has been facing a huge amount of loss. He called the plants in Berlin and Austin, “gigantic money furnaces.” Musk added, “Both 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. The plants are losing billions of dollars right now. There’s a ton of expense and hardly any output.”

He pointed out that the loss is due to the supply disruptions and some of the batteries are stuck at the Chinese port as there is a covid-related lockdown at Shanghai Plant.  In an interview, Musk said, ” The past two years have been an absolute nightmare of supply chain interruptions, one thing after another, and we are not out of it yet.” He assured that the problem is going to get fixed real soon but it requires a lot of attention.

Tesla has also struggled to increase the production in Austin of Model Y SUVs that use company’s new 4680 cells and structurally integrated battery pack. To keep up with the demand of this car is a difficult task at the moment. The company has also paused the worldwide hiring and all of these doesn’t seem a good sign for both the company and its employees.