Musk: New Tesla Factories Berlin and Texas Lose Billions

Electric car maker Tesla’s new factories in Germany and Texas are losing billions of dollars. That’s what Tesla CEO Elon Musk said. According to Musk, the factories face high costs and difficulties in ramping up production quickly.

Tesla has a factory in Grünheide east of Berlin, which was formally inaugurated earlier this year. Tesla also has a new facility in Austin, Texas.

According to Musk, both factories are now “giant money-burning blast furnaces”. That’s what he said to the Tesla Owners of Silicon Valley, a Tesla fan club. According to the multibillionaire, the focus is now on keeping the work going.

Musk recently said that Tesla will cut jobs to cut costs. In addition, 3 to 3.5 percent of the jobs must be lost in the coming months, according to the CEO. Musk has also said he has bad feelings about the economy and that a recession in the United States is likely.