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Elon Musk describes Tesla factory in Grünheide as a "money incinerator"


“That sound of burning money”: Tesla boss Elon Musk outlined the current losses at the factories in Brandenburg and Texas in clear words. There are layoffs in the group.

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Elon Musk (March 2019)

Photo: Jae C. Hong / dpa

500,000 cars a year will soon be built in the huge Tesla factory in Brandenburg - according to the plan, around 12,000 employees will then take care of the construction of the electric vehicles.

However, according to the company boss, the plant is currently causing some concerns.

According to Elon Musk, Tesla's new electric car factories in Grünheide near Berlin and Austin in the US state of Texas are currently losing "billions of dollars".

Musk described the sites as "giant money incinerators" in a video interview released Wednesday.

Musk: "It's really like a gigantic roar, this sound of burning money." In an interview with the Tesla Owners of Silicon Valley fan club, he called the past two years an "absolute nightmare" with regard to the supply chain problems in the auto industry.

The Tesla boss warned: "We're not over it yet."

Now it is a matter of keeping the company running so that the employees continue to be paid and the group does not go bankrupt.

While high start-up costs and losses are relatively normal for new plants like Grünheide and Austin in the start-up phase when ramping up production, Tesla also faced challenges with its Shanghai plant.

"The Covid shutdowns in China have been very, very difficult to say the least," Musk said.

The interview was conducted on May 31st, but the part with the most recent statements has only now been broadcast on the Internet.

Job cuts planned in the group

Musk had recently repeatedly warned of an economic downturn and announced job cuts at Tesla.

The electric car maker will cut 3 to 3.5 percent of its jobs in the coming months, Musk clarified on Tuesday after conflicting reports.

Around every tenth job among employees is to be lost, while the number of factory workers will increase in the long term.

At the beginning of the year, Tesla had almost 100,000 employees.

What the dismantling plans mean for the German Tesla plant in Grünheide in Brandenburg remained open.

The job creation is going on there.

A company spokesman was initially unavailable.

At the weekend, the IG Metall trade union pointed out that the workforce in Grünheide was increasingly dissatisfied with wages that were too low and unequal.

That is why the recruitment of new employees is not progressing as quickly as planned.


Source: spiegel

All business articles on 2022-06-22

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