That roaring sound? It’s money on fire, the billionaire said.
A Tesla-recognized club of electric vehicle owners swallowed a hard pill as Elon Musk told the group in an interview published Wednesday, June 22, that the company’s Austin and Berlin factories are losing billions of dollars. Musk told Tesla Owners of Silicon Valley that the factories have become “gigantic money furnaces,” burning through cash faster than production because of battery production issues and delays at ports in China, Reuters reported.
The million-square-foot factory in Austincalled Giga Texas, is only making a “tiny” number of cars, Musk told the group, because of problems manufacturing its more powerful “4680” batteries. Meanwhile, the tools to make the traditional 2170 batteries are held up at a port in China.