Tesla’s Production Woes: A Deep Dive into the Texas and Berlin Factories
In a recent chat with Tesla Owners of Silicon Valley—the club that gets to sit in the front row for all things Tesla—Elon Musk revealed a sobering truth: the brand’s shiny new plants in Texas and Berlin are, for now, steaming money. Brace yourself.
How the Twins Are Stoking the Fire
- Austin, Texas – The factory is churning out a “tiny” amount of electric cars. Why? The bottleneck? New 4680 batteries are dancing behind the scenes, and the old 2170 ones are stuck on a cruise around China’s ports.
- Berlin – Slightly ahead in the game, still riding the 2170 battery train, but the same issues are looming.
Musk compared the situation to watching “money on fire” – a roaring furnace that’s turning great intentions into an outright loss of billions.
A Quick Fix? Not quite
“All is going to get fixed real fast,” Musk assured us, but he added: “We’re talking a lot of attention.” Think of it as a maintenance crew scheduled for a whirlwind tour, but the schedule keeps shifting.
The Bottom Line in Plain English
Imagine two giant, high‑tech factories, each burning cash like a match in a hurricane. The production line is gapped by a battery shortage, and old batteries are stuck in Chinese ports like a bad Tinder match. As the needs of production grow, the financial burn intensifies.
So, if you’re watching Tesla’s next chapter, keep an eye on the railways of battery supply and the port traffic in China – that’s where the next real twist is likely to happen. And remember, even the most ambitious rockets can stumble in the sandbox. Here’s hoping the moon shots (literally) change soon.
Seeking to ‘not go bankrupt’
Tesla’s Global Roller Coaster: China Shutdowns, Supply Woes, and the 10% Cut
Elon Musk tweeted that the Covid‑19 lockdowns in Shanghai were “very, very difficult.” That buzzkill didn’t just buckle the batteries in China; it hit Tesla’s California plant too, because some of its parts are sourced from the very city in lockdown.
Why the Shanghai Plant is Taking a Break
- The Plan: Tesla will halt “most” production in the Shanghai factory during the first two weeks of July. The pause isn’t a permanent empty‑stand‑by—it’s a strategic upgrade of the site to make way for higher output.
- Timing: The memo that revealed these plans was intercepted by Reuters and confirmed the move ahead of June’s demands.
Supply Chain Mayhem & Black‑Friday Panic
For the past two years, Musk has likened the supply chain to a nightmare marathon, with one interruption sprinting into the next. “We’re not out of it yet,” he told the press, fiercely protecting his crew’s payroll. He’s worried about keeping the factories humming so everyone can keep earning a living without the company filing for bankruptcy.
The 10% Crunch: Cutting Staff & Hiring Stagnation
- Fan‑fare Halt: Early this month, Musk admitted he felt a “super bad feeling” about the economy—so the Editorship decided on a 10% cut of salaried staff.
- Three‑Month Plan: Over the next three months, the company will shave off an additional 10% of its workforce.
- Hiring Freeze: Anyone looking to join Tesla should brace for a global hiring pause.
Future Horizons: Berlin, Texas, and the Cybertruck
While the company’s factories in Berlin and Texas are primed for growth, the Cybertruck launch has been bumped again but might finally arrive in mid‑2023 according to Musk.
So, as Tesla revs up for the next decade, it’s navigating the stormy seas of supply chains, workforce adjustments, and the relentless pursuit of a greener future. Stay tuned—there’s no “stop, drop, & roll” involved here, just an ambitious rewrite of the auto‑industry playbook!
