$TLSA Gigafactories are "Money Furnaces&quo

Catching up on Tesla news which is fast and furious this week:

https://twitter.com/ShortingIsFun/status/1539346817275551748…

Wow, 500 employees laid off just at the still unfinished $TSLA NV Gigafactory. Yet no one seems to be questioning this yet….

https://archive.ph/AzNrK

“The lawsuit was filed late Sunday in Texas by two workers who said they were terminated from Tesla’s gigafactory plant in Sparks, Nevada in June. According to the suit, more than 500 employees were terminated at the Nevada factory.”

This is the same company where Tesla office workers with no mechanical skills are being sent to work service centers.

Electrek headline: Tesla is sending untrained employees to work on cars as service becomes problematic
Fred Lambert

- Jun. 16th 2022 12:24 pm PT

@FredericLambert

https://electrek.co/2022/06/16/tesla-untrained-employees-wor….

“Tesla is sending some of its employees who are not in service and are untrained to work on cars into service centers to fix vehicles. It looks like Tesla’s service issues are bigger than we thought.”

Then yesterday this material information - which some Tesla Club podcasters have had since May 31, 2022 - was released in Part 3 of their podcast interview of Elon Musk. Note Elon’s own words about the Austin and Berlin plants:

June 22, 2022
9:40 PM UTC
Last Updated 2 hours ago
Autos & Transportation

Reuters headline: Musk says Tesla’s new car factories ‘losing billions of dollars’
By Hyunjoo Jin

SAN FRANCISCO, June 22 (Reuters) - Tesla Inc’s (TSLA.O) new car factories in Texas and Berlin are “losing billions of dollars” as they struggle to increase production because of a shortage of batteries and China port issues, Chief Executive Elon Musk said in an interview published on Wednesday.

“Both Berlin and Austin factories are gigantic money furnaces right now. Okay? It’s really like a giant roaring sound, which is the sound of money on fire,” Musk said in an interview with Tesla Owners of Silicon Valley, an official Tesla-recognized club, in Austin, Texas, on May 31.

The club divided its interview with Musk into three parts, the last of which was released on Wednesday.

Speaking of gigafactories in Austin and Berlin, Tesla’s Shanghai plant is closing down again for two-weeks. But not for COVID this time:

June 22, 2022
3:40 PM UTC
Last Updated 11 min ago
Autos & Transportation

Reuters headline: EXCLUSIVE Tesla plans 2-week suspension for most Shanghai production for upgrade

https://archive.ph/aPYCr

SHANGHAI, June 22 (Reuters) - Tesla Inc (TSLA.O) plans to suspend most production at its Shanghai plant in the first two weeks of July to work on an upgrade of the site, according to an internal memo seen by Reuters.

After the upgrade, the U.S. automaker aims to boost the plant’s output to a new record high by the end of July to get closer to its goal of producing 22,000 cars per week in Shanghai, according to the memo.

A two-month-long COVID lockdown in Shanghai delayed Tesla’s original plan of reaching production of 8,000 Model 3s and 14,000 Model Ys per week at the Shanghai plant by mid May, two people familiar with the matter told Reuters previously.

Many of the Model Ys Made in China shipped to Europe. And yet Tesla registrations in Europe this quarter, Q2 2022, are lagging competition:

Tesla registrations (3.26% market share in 14 countries) are behind the registrations of VW/Audi (10.04% marketshare in 14 countries), BMW (7.49% market share in 14 countries), Kia (7.06% in 14 countries), Hyundai (6.51% marketshare in 14 countries), Peugeot (5.2% marketshare in 14 countries) and Renault (3.87% marketshare in 14 countries).

And yes, these numbers will change somewhat before the end of this month, but who here wants to claim Tesla has no “real” competition any longer?

https://eu-evs.com/marketShare/ALL/Brands/Bar/All-time-by-Qu…

Lastly, Musk is now considering advertising?

Electrek headline: Elon Musk considers Tesla ads to counter media bias

- Jun. 22nd 2022 2:56 pm PT

@FredericLambert

https://electrek.co/2022/06/22/elon-musk-tesla-advertise-cou…

Musk suggested that Tesla could start advertising to avoid bias, but it is not a priority right now since the automaker has strong demand that far outpaces its production capacity.

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“Both Berlin and Austin factories are gigantic money furnaces right now. Okay? It’s really like a giant roaring sound, which is the sound of money on fire,” Musk said in an interview with Tesla Owners of Silicon Valley, an official Tesla-recognized club, in Austin, Texas, on May 31.

LOL… he certainly has a way with words! :slight_smile:

I spent most of my working career in automotive. Everything from manufacturing to R&D to product development to… vehicle launch.

Starting up an assembly plant IS an expensive endeavor. And, in the case of Berlin and Austin, it’s ALSO new product. Doesn’t LOOK like new product, but the Y is substantially redesigned under the skin. Launching new product and new plants will be a money furnace. They’ll get it figured out. They’re quite resourceful.

It’ll happen again when they launch Cybertruck at the end of 2023 or so as well. THAT could be extremely difficult. Or not so bad. We’ll all find out. Fundamentally, the vehicle could be easy to build. But it utilizes new designs and new manufacturing processes… and that introduces… issues.

Glad I no longer do that sort of stuff. Very high pressure (money is being thrown into a furnace after all!) and long hours.

Rob
Former RB and BL Home Fool, Supernova Portfolio Contributor & Maintenance Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

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Rob, it’s not just Tesla (as you are well aware) but every day I read a new horror story about auto assembly factories. Ford had an announcement about layoffs while announcing a new plant in Valencia this morning. Let me see if I can go find that which I read about an hour ago on Twitter.

Well, layoffs and assembly plant problems are usually two different things.

Most of the industry is struggling with supply issues, causing most layoffs due to reduced build schedules.

Tesla’s layoffs (and perhaps some layoffs with legacy companies) are due to anticipated drops in the economy. I suspect (no proof) that Tesla is merely laying off some salaried workers because they have been growing super fast and that usually leads to over/under staffing sorts of issues.

Rob
Former RB and BL Home Fool, Supernova Portfolio Contributor & Maintenance Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

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