Tesla’s Brand New Gigafactory in Berlin and Austin Is Losing Billions and while that’s absolutely true and Dollars undoubtedly makes a great headline on Twitter and Facebook there are plenty of important contexts you’re getting lost in a flurry of clickbait.
You are familiar with the term that it takes money to make money and this is easily true in like 99 business situations it’s spending your money or someone else’s money forever profit comes first like it works naturally when you build the second or third biggest manufacturing plant on the face of the earth.
Before it’s money printer and clear there are some really interesting challenges facing Tesla as the latest factories in Germany and Texas.
What did Elon Musk talk about very clearly and honestly recently?
Elon Musk recently spoke very frankly and honestly about how the company is working to deal with bottlenecks and eventual roadblocks. So let’s talk about how things are really going at Giga Texas and Giga Berlin while at Tesla.
Some of the fears surrounding K’s production ramp try to clear up the uncertainty and doubts Well we can start with what Elon Musk actually said comes from an interview he did with Tesla owners from Silicon Valley and KW did.
This is just a short excerpt of a very long freeform conversation that covers basically every topic imaginable with no real focus. So when they turn around to talk about the cost of the hardware.
Why does Elon say that there is a lot of money going on in the factory right now?
Elon says there’s crazy money going on at the factory right now, he’s talking about the Giga Texas where the interview is taking place.
Elon is clearly not happy with what he is saying coming out the window on the production floor and stumbles upon his words for a moment before giving an explanation of what we should be producing from this factory.
A very small amount compared to a lot of cars but with the 4680 ramp we had challenges and the first time Tesla attempted to mass-produce a vehicle with Model Y production at Giga Texas.
Why did Tesla make a quick start and correct the production line at Gigatex?
The structural pack that was created was not only their new 4680 cell design but their new structural battery pack architecture as well as two major changes in the way vehicles are built and the Tesla plant that manufactured those cells for the first time is also a fairly new and growing volume.
That introduction of the 4680 and Structural Pack didn’t quite go as planned Tesla made a quick start and production line correcting at Gigatex to make the Model Y in a more familiar configuration with the 2170 cell and non-structural axis Pac Elon says Pivot also ran into an unexpected setback.
Ironically, the 2170 The tooling needed for the type cars was stuck in China so we had the Shanghai factory inactive. We have this factory stuck in the port of China.
Why did Elon emphasize a very important point?
When advertising the tooling for Tesla to completely shut down its factory for three weeks before going even deeper, Elon stresses a very important point are they say.
That now it’s all going to get better fast but it requires a lot more attention now, what needs to be done here Elon launches into a very long rant about how much money Elon is losing.
That’s the part that’s settled on. Elon says that this factory needs to produce more volume. It will take more effort to make in the first place and the same is true of Berlin because Berlin is in a slightly better position.
Berlin started with the 2170 style and did not have the 4680 and structural pack issue but both the Berlin and the Auste en factory are large estate furnaces.
Easy points –
- The sound of a loud roar that is bigger than a dumpster fire is the sound of money on fire A dumpster is too small Berlin and Austin are losing billions of dollars right now.
- There’s a ton to spend and hardly any production is building Berlin and Austin is functional and our concern is to bring Shanghai back in full swing.
- Everything is a very small thing Finally let’s talk about some interesting things which say that Berlin is in a little better shape but still facing the same problems as Giga Austin.
- 4680 cells are a contributing factor but they are not the primary cause of production bottlenecks otherwise the problem would be confined to Austin.