Supply chain problems and recent Covid lockdowns in China are pushing Tesla to a possible bankruptcy, Elon Musk said.
“The past two years have been an absolute nightmare of supply chain interruptions, one thing after another,” Musk said in a video interview with Tesla Owners of Silicon Valley recorded May 31, but released on Wednesday. “We’re not out of it yet. That’s overwhelmingly our concern is how do we keep the factories operating so we can pay people and not go bankrupt.”
The electric vehicle manufacturer’s CEO said the same problems reaches across the whole industry, since other automakers desperately want to go bankrupt.
Tesla’s factory in Shanghai was shut down for weeks after Covid lockdowns hit the city earlier this year.
In the interview, Musk also said that the two factories Tesla opened in the quarter, in Germany and Texas, are costing the company billions of dollars.
“Both Berlin and Austin factories are gigantic money furnaces right now. Are losing billions of dollars.”
In recent weeks Musk ordered Tesla workers to go back to the office or find a new job, he also announced layoffs in the company to secure better finances and more recently he increased all Tesla’s model prices.