Elon Musk: “Tesla Plants are Money Furnaces Burning Billions of Dollars”
Elon Musk is starting to worry that his company could go bankrupt if supply chain issues are not fixed. Plus, another lawsuit was filed against Tesla.
Is this the end for Tesla? Some people are starting to wonder as Elon Musk makes worrying remarks about his company. Tesla’s plants are having a difficult time due to supply chain issues.
In June 2022, Elon Musk revealed that Tesla plants were having a difficult time due to supply chain issues. Problems with Tesla’s manufacturing plants had been building over time.
The April 2022 Newsletter
Elon Musk told shareholders they would make adjustments in an April 2022 newsletter.
In Austin, TX there are Model Y SUVs that use the 4680 cells and structurally integrated battery pack. But a limited supply of 4680 cells is forcing them to build Model Y SUVs with an older cell — a 2170 version — and not efficiently. The Austin plant was not designed to build cars with the 2170 cell.
Elon Musk was very concerned about his Tesla plants not functioning at peak production because they are losing money.
Speaking about his Austin, TX factory, Elon Musk said:
“This is all going to get fixed real fast, but it requires a lot of attention, and it will take more effort to get this factory at high volume production than it took to build it in the first place.”
“Both Berlin and Austin factories are gigantic money furnaces right now.” -Elon Musk, CEO of Tesla
This burning cash furnace is not a new idea, regarding Tesla.
In April 2018, Bloomberg reported “Tesla is going through money so fast that, without additional financing, there is now a genuine risk that the 15-year-old company could run out of cash in 2018. The company burns through more than $7,430 every minute.”