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Tesla factories in Texas and Berlin have become 'gigantic money furnaces' 'losing billions' due to battery shortage and Shanghai shutdown, says Musk

This Is Money logo This Is Money 23/06/2022 Daily Mail City & Finance Reporter and Rob Hull For Thisismoney.co.uk
Losses: Tesla boss Elon Musk (pictured) said its Texas and Berlin factories were 'gigantic money furnaces' © Provided by This Is Money Losses: Tesla boss Elon Musk (pictured) said its Texas and Berlin factories were 'gigantic money furnaces'

Elon Musk said Tesla's car factories in Texas and Berlin are 'losing billions of dollars' as they struggle to increase production because of a shortage of batteries and Chinese port issues.

'Both factories are gigantic money furnaces right now,' the electric car maker's chief executive said in an interview released on Wednesday.

'It's really like a giant roaring sound, which is the sound of money on fire. 

'Supply chain interruptions have been extremely severe.

'Overwhelmingly our concern is how do we keep the factories operating so we can pay people and not go bankrupt.'

Waiting times for Tesla's Model S and Model X cars in the UK are now up to two years due to sky-high demand and reduced vehicle outputs. 

Tesla Model S © Provided by This Is Money Tesla Model S Tesla Model X © Provided by This Is Money Tesla Model X

The 50-year-old said the Covid-19-related shutdowns in Shanghai 'were very, very difficult'. 


Video: Musk: Tesla's new factories 'losing billions' (Reuters)

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He added: 'The past two years have been an absolute nightmare of supply chain interruptions, one thing after another, and we're not out of it yet.'

Mr Musk's comments come in the same week that it was revealed that UK dealers have stopped taking orders for some new electric cars due to a lack of availability caused by production disruption.

Drivers have been warned they face a minimum of waiting time of 12 months for deliveries of the most sought-after EVs, as global manufacturers continue to be strangled by the shortage of semiconductor chips.

Electric cars are selling out: The availability of some EVs is starting to run dry, with dealers pulling the plug on new orders for popular models, including the MG ZS EV pictured

Electric cars are selling out: The availability of some EVs is starting to run dry, with dealers pulling the plug on new orders for popular models, including the MG ZS EV pictured
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A logjam in the supply of other car parts usually produced in Russia and Ukraine since the war began earlier this year has also added to delivery delays.

MG dealerships have now suspended orders for the £29,295 ZS EV and £29,625 5 EV Long Range following 'unprecedented levels of demand' for the vehicles, according to Ginny Buckley, founder of EV website Electrifying.com.

The EV website also found that a lack of availability has led Skoda and Volkswagen to delete certain electric models from their Enyaq and ID.3 line-ups, with waiting times of up to 12 months for the variants still listed.

A Volkswagen dealership told the website: 'I advise all customers to be a year or a year-and-a-half ahead of the schedule if they want a vehicle desperately.

'We don't think, internally at least, this is going away in a rush. It's the new norm.'

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