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

StreetInsider2022-06-23

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

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Comment24

  • Senkas
    ·2022-06-23
    His statements are used very well to speculate the market..
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  • L.Lim
    ·2022-06-23
    Pump and dump tactic by Mr. Elon, time to give up Tesla for good.When it does well he sells (using Twitter saga hype), now he wants to buy back in, so he manipulates it to drop (this statement, and the previous email about future outlook and firing staff)Investors should unite to let Tesla collapse. What an unethical scumbag of a person Mr. Elon is...
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    • L.LimReplying toAh_Meng
      just realised I said "bull market" when I meant "bear"... only time will tell if the competition will really take Tesla (and Musk) down a notch
      2022-06-27
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    • Ah_MengReplying toL.Lim
      Yup... agree... but need to be patience. When it rains, it pours. I am quite sure when opportunity arises, the crowd will come in to kick it harder while it is down.
      2022-06-26
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    • L.Lim
      true, but I think with the headwinds of a bull market, emergence of serious competition... there might just be an opportunity
      2022-06-26
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    View more 2 comments
  • Ahhuathuat
    ·2022-06-23
    Buy, buy, buy and hold for 1 year 
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  • mster
    ·2022-06-23
    Next earning gonna be painful. 😓
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    • LimLS
      true. lower delivery numbers, higher expenses from new factories and their bitcoin holdings value had dropped much below their buying price. Next earning might be ugly.
      2022-06-23
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  • Bryan_lyc
    ·2022-06-23
    W
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  • PSFund
    ·2022-06-23
    Ahead of ramp up of course
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  • Universe宇宙
    ·2022-06-23
    [Surprised] 
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    View more 2 comments
  • Edwardtoh
    ·2022-06-23
    Read
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  • Joyus
    ·2022-06-23
    👍
    Reply
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  • Coolnet
    ·2022-06-23
    [Cry] [Cry] [Cry] 
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  • JQ Black
    ·2022-06-23
    Like
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  • Guavaxf30
    ·2022-06-23
    Painful announcement. Probably to justify his ultra negative statements, and actions to fire staff. May be best to reduce Tesla, or even stay away for a while.
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    • mster
      Yeah. At least until the next earning.
      2022-06-23
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  • chinks29
    ·2022-06-23
    Ok
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  • Looyusooi
    ·2022-06-23
    Ok 
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  • WalkerWoon
    ·2022-06-23
    Ok
    Reply
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  • Joshua_sg
    ·2022-06-23
    Like pls tks 
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    • Gerinit
      👍
      2022-06-23
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    • JQ Black
      like
      2022-06-23
      Reply
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    • BengHing
      K
      2022-06-24
      Reply
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  • Huat1333
    ·2022-06-23
    Well [Like] [Like] [Like] 
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    • Huat1333
      ok ok [Miser] [Miser]
      2022-06-23
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  • ND80
    ·2022-06-23
    K
    Reply
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    • ND80
      K
      2022-06-23
      Reply
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  • xiaobaii
    ·2022-06-23
    like please
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    • Joyus
      K
      2022-06-23
      Reply
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    • WalkerWoon
      Ok
      2022-06-23
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  • STLoke
    ·2022-06-23
    Hmm....
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