Tesla Factories Losing Billions

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Tesla Factories Losing Billions

Tesla Factories Losing Billions Of Dollars!

Tesla's factories in the USA and Germany are facing billions of dollars loss due to supply disruption and battery shortages worldwide. One of the major Tesla factories is in Shanghai, which has been facing strict COVID lockdowns since this year. As a result, it has become very difficult for the manufacturers to operate & has even caused supply disruptions.

As a result of low to no productivity, Elon Musk has been hinting toward cutting jobs at the company. According to Mr. Musk, the factories in the Austin and Berlin have become gigantic furnaces for the company's money. And Elon Musk isn't liking the idea of his company's money being burned!

In an interview, Elon Musk stated that these companies have hardly any output but have a lot of expenses. On top of that, these factories are also facing a lot of problems in increasing production. Furthermore, COVID-19 restrictions have made things even more difficult for these factories in Berlin and Austin.

Shortage Of Battery Parts

Since Tesla only produces electric cars, one of the major components is the battery. According to experts, the components for the Tesla car batteries are stuck at the Chinese ports. As a result of this supply disruption, Tesla's factories in the USA are only producing a small number of cars.

The only way forward for these factories is the lifting of COVID-19 restrictions in Shanghai (China), where Tesla's Giga factories are located. That's why no one can say with certainty how long it is going to take for the situation to get fixed - It could be fixed within months or may take longer!

Rising COVID-19 Infections In China

If we look at the COVID-19 situation in China, a lot of cities have come under lockdown to limit COVID-19 infections. The lockdown and containment measures include limiting the movement of material and people in various sectors such as shipping, manufacturing, and financial.

And one of the major hubs for all of these sectors is Shanghai city where Tesla's factories are located as well. So in that sense, Tesla is not only facing manufacturing restrictions but is also facing problems with shipping as well.

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