Tesla Gigafactories: Elon Musk Says It's Losing Billions of Dollars on Berlin, Texas—Why?

Isaiah Richard, Tech Times 22 June 2022, 10:06 pm

Tesla's Gigafactories are massive, and it requires a significant budget to work and continue its operations for the world, primarily as it aims to bring the many electric vehicles it promised on its erection. However, there is a problem that it faces now, and it is losing billions of dollars to continue the production these plants are running, says Elon Musk.

Tesla Gigafactory Berlin, Texas, Losing Billions of Dollars

(Photo : SUZANNE CORDEIRO/AFP via Getty Images)
CEO of Tesla Motors Elon Musk speaks at the Tesla Giga Texas manufacturing "Cyber Rodeo" grand opening party on April 7, 2022 in Austin, Texas.

The Tesla Silicon Valley owners, a verified organization for the Tesla community, have shared their interview video with Elon Musk, and one of its topics is the status of its latest Gigafactories. In the interview, Musk revealed that Gigafactory Berlin and Texas experienced hardship in its operations, and it is because of the chip shortage that the entire industry suffers from at present.

In the interview, Musk said that the company sees a challenge in boosting production to bring the cars that the Gigafactories promise to deliver. The chip shortage is hindering its ability to get these cars out of the factories and continue its production stream due to having no internal components that will help power the vehicles.

Elon Musk Confirms via Interview; What's the Cause?

According to Gadgets360, Musk blames the chip shortage for the many losses of the two Gigafactories it owns, and the CEO also revealed that the tech CEO said it had already lost billions due to the issue. Nevertheless, Tesla is still focusing on producing more vehicles for the world via these factories, and the chip shortage may be a hindrance, but it would not stop them from their deliveries.

Tesla Gigafactories and its Ventures

Tesla only has three Gigafactories built from the ground up. It includes the factory in Shanghai, China, its Berlin facility in Germany, and the Nevada plant in the United States. The company is not yet deciding on a fourth location, as Musk previously denied the rumors regarding a new site it will open in Russia as part of previous talks.

The Tesla Gigafactory in Berlin recently opened last year, and it is towards the end of 2021, meaning that it is a young plant from the clean energy company. However, it has already faced massive disputes, including environmental charges against them, as well as chip shortage problems that hinder its ability to deliver on its promised Model Y production.

Expansions are coming for both the Texas and Berlin plants, and they cost billions as well, meaning that it already has a budget for improving its facilities and doing more for its company. The issues it faces now are all unprecedented, and the company is doing its best to cope up with the trying times, especially with the chip shortage still threatening its production.

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Written by Isaiah Richard