Elon Musk says Tesla is losing billions from two big 'money furnaces'

In an interview, Tesla CEO Elon Musk revealed the struggles of owning a car company and how factories can be 'money furnaces'.

Published Jun 23, 2022 5:01 AM CDT   |   Updated Sun, Jul 17 2022 8:38 PM CDT
2 minutes & 1 second read time

Elon Musk sat down for an interview with Tesla Owners Silicon Valley to discuss gigafactory production, Full-Self Driving (FSD), and more.

The interview spans over an hour, but at the beginning, Musk is asked if anyone at Tesla is working on Car Sharing, which will allow Tesla owners to rent out their car, much like Uber. Musk replies by saying that no one at Tesla is working on that feature, and that the company is simply trying not to go bankrupt. The Tesla CEO explains that the company is focused on its making sure Tesla Gigafactory's are producing vehicles that will keep Tesla's revenue above its high cost.

Musk explains in the interview conducted on May 31, that at the moment, the Austin gigafactory and the new gigafactory in Berlin are "gigantic money furnaces", since both of the factories have only been able to manufacture a small number of vehicles due to a myriad of supply chain issues. Notably, a COVID-19 outbreak caused Shanghai to enter into a full lockdown that shut down Tesla's factory. Now Musk says the company is working hard to get all its factories up and running smoothly, so he can increase production to meet the overwhelming demand.

"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," described Musk.

Furthermore, Musk spoke to Bloomberg earlier this week, where he said that Tesla is facing "super crazy supply-chain shortages", and that supply chain shortages are the largest problem that Tesla needs to overcome.

In other Elon Musk news, the SpaceX CEO may soon officially get his hands-on Twitter as Twitter's board of directors is pushing shareholders to accept Musk's offer. Additionally, Musk has recently trolled Starlink internet users by saying he was going to change the default Wi-Fi name for the service. Lastly, Musk recently said that he is still purchasing his favorite cryptocurrency, despite the market suffering mass sell-offs that have caused prices to plummet.

Read more: Twitter is pushing shareholders to accept Elon Musk's $44 billion deal

Read more: Elon Musk trolls all Starlink users by changing the default Wi-Fi name

Read more: Elon Musk says he is still buying his favorite cryptocurrency

Elon Musk says Tesla is losing billions from two big 'money furnaces' 25
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Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science and space news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

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