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New Tesla plant losing billion of dollars

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Elon Musk Tesla plant / Credit: REUTERS

Elon Musk says Tesla’s new factories in Germany and the US are “losing billions of dollars” due to battery shortages and supply disruptions in China.

The multi-billionaire also called the plants in Berlin and Austin, Texas “gigantic money furnaces”.

Covid-19 lockdowns in China this year, including in Shanghai where Tesla has a huge factory, have made it increasingly difficult for manufacturers to operate.

In recent weeks Mr Musk has been warning of job cuts at the firm.

“Both Berlin and Austin factories are gigantic money furnaces right now. It’s really like a giant roaring sound, which is the sound of money on fire,” said Mr Musk, who is the electric vehicle maker’s chief executive.

The plants are “losing billions of dollars right now. There’s a ton of expense and hardly any output,” he added in an interview with the Tesla Owners of Silicon Valley, a company-recognised club.

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Mr Musk said the so-called gigafactories have been struggling to increase production since they were opened earlier this year.

Tesla’s site in Austin currently produces a “tiny” number of cars, partly because some components for its batteries were “stuck” at a Chinese port “with no one to actually move it”, he said.

“This is all going to get fixed real fast but it requires a lot of attention,” Mr Musk added.

The interview was recorded at the end of last month but this part of the conversation was only posted on Wednesday.

Authorities in China locked down a number of its cities earlier this year in response to a surge in Covid-19 infections.

Tough restrictions were imposed on the movement of people and materials including in the financial, manufacturing and shipping hub of Shanghai.

Mr Musk said the shutdown of Shanghai was “very, very difficult” for Tesla, which reportedly halted most of its production at its ‘gigafactory’ in the city for weeks.

The site will largely be closed again for two weeks next month for upgrading works, according to the Reuters news agency, which cited an internal memo.

This is aimed at boosting the site’s output, bringing it closer to the company’s goal of the plant producing 22,000 cars every week, the report said.

Tesla did not immediately respond to a BBC request for comment.

Last week, the company raised the price of its whole range of cars in the US by almost 5%, as the cost of raw materials including aluminium and lithium rose.

This week, Mr Musk said Tesla planned to shed 3.5% of its global workforce after earlier saying that he had a “super bad feeling” about the economy.

Meanwhile, German carmaker BMW said on Thursday that it had formally begun production at its new $2.2bn (£1.8bn) facility in the northeastern Chinese city of Shenyang.

BMW said the plant, which is its third in China, will increase its annual output in the country from 700,000 to 830,000.



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Ghana has one-month crude oil supply – NPA

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The National Petroleum Authority (NPA) has revealed that Ghana currently has a one-month supply of crude oil in storage capacity.

The Authority, however, is assuring the populace that there is no cause for alarm as they have the product available for the consuming public.

The admission follows Bloomberg’s prediction that Ghana faces a looming fuel shortage as the central bank rations dollars after oil prices surged following Russia’s invasion of Ukraine.

The monthly fuel import bill for Ghana jumped to $450 million in May, from $250 million in January.

The Central Bank is only offering about $100 million a month at its foreign exchange auctions making dollars difficult for the oil marketing companies to come by.

But the Director of Communications at the NPA, Kudus Mohammed, tells JoyNews in an interview that the situation is under control.

“We don’t have to grant permission to an unnecessary number of vessels that might bring the product so that you will be finding it difficult as to where to put them. So there is a certain regular timetable that guarantees who brings what at what time and the Planning Department is able to gauge at a particular time, what is the need of the consuming public, what is available across the country and who should actually be granted a permit.

“Diesel particularly is becoming a very scarce commodity in the market. So what is primarily important is the access of it and the regular amount which is supposed to be available to the consuming public as and when they will want it,” he told host George Wiafe.  



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Ghana has one-month crude oil supply – NPA

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File photo

The National Petroleum Authority (NPA) has revealed that Ghana currently has a one-month supply of crude oil in storage capacity.

The Authority, however, is assuring the populace that there is no cause for alarm as they have the product available for the consuming public.

The admission follows Bloomberg’s prediction that Ghana faces a looming fuel shortage as the central bank rations dollars after oil prices surged following Russia’s invasion of Ukraine.

The monthly fuel import bill for Ghana jumped to $450 million in May, from $250 million in January.

The Central Bank is only offering about $100 million a month at its foreign exchange auctions making dollars difficult for the oil marketing companies to come by.

But the Director of Communications at the NPA, Kudus Mohammed, tells JoyNews in an interview that the situation is under control.

“We don’t have to grant permission to an unnecessary number of vessels that might bring the product so that you will be finding it difficult as to where to put them. So there is a certain regular timetable that guarantees who brings what at what time and the Planning Department is able to gauge at a particular time, what is the need of the consuming public, what is available across the country and who should actually be granted a permit.

“Diesel particularly is becoming a very scarce commodity in the market. So what is primarily important is the access of it and the regular amount which is supposed to be available to the consuming public as and when they will want it,” he told host George Wiafe.  



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Continue Reading

Business

Ghana has one-month crude oil supply – NPA

Published

on


File photo

The National Petroleum Authority (NPA) has revealed that Ghana currently has a one-month supply of crude oil in storage capacity.

The Authority, however, is assuring the populace that there is no cause for alarm as they have the product available for the consuming public.

The admission follows Bloomberg’s prediction that Ghana faces a looming fuel shortage as the central bank rations dollars after oil prices surged following Russia’s invasion of Ukraine.

The monthly fuel import bill for Ghana jumped to $450 million in May, from $250 million in January.

The Central Bank is only offering about $100 million a month at its foreign exchange auctions making dollars difficult for the oil marketing companies to come by.

But the Director of Communications at the NPA, Kudus Mohammed, tells JoyNews in an interview that the situation is under control.

“We don’t have to grant permission to an unnecessary number of vessels that might bring the product so that you will be finding it difficult as to where to put them. So there is a certain regular timetable that guarantees who brings what at what time and the Planning Department is able to gauge at a particular time, what is the need of the consuming public, what is available across the country and who should actually be granted a permit.

“Diesel particularly is becoming a very scarce commodity in the market. So what is primarily important is the access of it and the regular amount which is supposed to be available to the consuming public as and when they will want it,” he told host George Wiafe.  



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