Elon Musk says Tesla manufacturers are ‘money burning machines’

Elon Musk has admitted that his Giga manufacturers in the US and Germany are losing millions due to lack of components

Having a back allows you to face commitments or critical moments more easily, there’s no doubt about that. Economic losses are always a shortfall in a business that should work but for one or several reasons, it is not working. And if losses are incurred, whoever has that support can decide to continue bearing that cost, or change something momentarily. Whoever does not own it, may face bankruptcy or termination of the enterprise.

With the advent of electric cars, which due to their technology require fewer building structures, employees, and assembly stations for engines and transmissions, for example, many startups, known as start-ups, have ventured into the automotive world following the same dream. It was when Tesla was created. Many have done well so far, and many are still in this startup phase as they need investors to trust their promises or prototypes in order to start production.

Rivian secured funding from Jeff Bezos and Amazon by selling him a massive fleet of electric delivery trucks
Rivian secured funding from Jeff Bezos and Amazon by selling him a massive fleet of electric delivery trucks

There are those who have managed to achieve good success by having very large support, as is the case with Rivian. Its founder, RJ Scaringe, Jeff Bezos tempted Mr. Amazon to not only sell him an entire fleet of electric delivery trucks, but also add him as a production partner for the Rivian R1T, the market’s first electric truck. However, it is currently facing serious financial problems as the lack of supplies prevents the units from being completed and delivered to their owners. That’s why, in the last quarter, the brand It produced 2,553 units, yet was only able to deliver 1,227 finishes.

This is where it allows you to step back and see things in the right perspective Check out the power of major brands compared to new ones trying to stand out from the crowd. As long as everything goes well, even completely already covid-19 pandemicmany models and companies were born, but now that life in the industry has begun to normalize, the difference between those who are able to face The lingering consequences of the missing components and those that remain, may signal the end for many.

A company like Tesla would lose millions by shutting down production due to a shortage of components.  But most of the new companies born with the electric car boom are in danger of disappearing.
A company like Tesla would lose millions by shutting down production due to a shortage of components. But most of the new companies born with the electric car boom are in danger of disappearing.

Elon Musk is the one who allowed to take a more rough reference to our moment in the automotive world. Recently, this Pretoria, South African-born businessman admitted this “Both the Berlin and Austin factories are giant money burning furnaces right now. It really is like a giant roar, the sound of money burning.”He told Reuters.

There are two reasons for logistics and production. – Accumulated delays in China’s ports and shortage of batteries due to scarcity of raw materials. According to reports, the factory Tesla in Texas is making much less than its capabilities and expectations due to lack of new 4680 battery produced by Panasonic electric cars, But at the same time it suffers from delayed shipments of tools to continue assembling the vehicles with the previous generation batteries known as 2170.

The new Panasonic 4680 batteries are one of the missing ones that the Tesla plant in Texas is running at a loss
The new Panasonic 4680 batteries are one of the missing ones that the Tesla plant in Texas is running at a loss

The Berlin factory does not run on 4,680 batteries, so its production has slowed, but it has a better chance of recovering in a few monthsonce the shutdowns that are still hampering China’s production start picking up.

“As anyone who has tried to order a Tesla knows, the demand for our cars is very high and the waiting list is long.”Musk said during his speech at the Qatar Economic Forum. “This is unintentional and we are working to increase production capacity as quickly as humanly possible.”completed.

Musk can take the moment like few manufacturers in the world. Only large car companies can suspend final production or even leave countries, as happened with Renault’s operations in Russia. But the most optimistic forecast ensures that supply and shipping problems will not improve until 2023. So it is possible that some brands will not be able to resist.

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