Elon Musk Expressed Bad Economy On Tesla

Bankruptcy to hit over Tesla expressed by Elon Musk say he hears the sound of money on fire.
Elon Musk revealed the financial hardships in an interview with a Tesla owners club. The interview was recorded on May 31 in Texas but was released on Wednesday.

Musk said the two factories – situated in Berlin and Austin – have been acting as what he called “gigantic money furnaces”. He figuratively said he hears the “sound of money on fire”.

Musk said that Tesla’s Texas factory was not able to produce an optimum number of cars because of challenges in boosting the production of its new 4680 battery. It said that it was not able to make its conventional 2170 batteries as the tools to make them are stuck in a port in China.

He blamed the COVID-induced lockdowns in Shanghai for the “very, very difficult” situation. He said they not only affected the Shanghai factory but also the California factory because many components of the cars used to be shipped from China.

Earlier this month Musk said due to the bad economy he might have to sack 10 percent of the Tesla staff and paused all hiring. He also said he would bring a 10 percent salary cut across the board.