Battery Shortages Are Causing Big Headaches for Elon Musk and Tesla
Updated on Jul 6, 2022 · 3 min read
Elon Musk is no stranger to frequenting the headlines of major newspapers, but lately, it hasn’t been related to an achievement made by Tesla. In fact, Musk reports that Tesla is struggling to get their Texas production plant and Berlin production plant up to speed, as it seems both locations are struggling to meet supply quotas for new Tesla EVs. But what exactly seems to be holding things up for the world’s most successful EV brand?
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What did Elon Musk have to say about the battery shortages?
As Yahoo Finance reports, Musk is indicating that the Austin, Texas, and Berlin plants are losing billions of dollars, as supply chain issues are once again holding up production at both locations.
More specifically, both of these plants are waiting on EV batteries and production materials from China. Yahoo Finance also quoted Musk as stating "The past two years have been an absolute nightmare of supply chain interruptions, one thing after another, and we're not out of it yet.”
Elon Musk also had bad news for Tesla employees
The news that supply chain issues are holding up yet another automaker isn’t surprising, but other details released by Musk certainly were. Elon Musk reported that Tesla was pausing hiring across the globe, and would be firing about 10% of its staff and giving salaried staff a 10% reduction in pay as a way to compensate for inflation and supply chain issues.
This obviously won’t make Elon Musk popular in the eyes of his employees or the public, but Tesla is searching desperately for ways to keep its production plants in Austin, Texas, and Berlin running without having to fire more people than necessary.
Did Elon Musk have anything to say about the Cybertruck?
He did—and it was about the only promising detail received from his statements that he gave in Austin earlier this month. According to Elon Musk, the Cybertruck is on schedule to be released to customers who have pre-ordered sometime in mid-2023, which is only a year from now.
This is a relief, and not just to those who have been waiting for their Cybertruck. The automotive world has been anticipating with bated breath the Cybertruck’s appearance. With models from Ford, Rivian, and Lordstown Motors seeming to outpace Tesla’s EV pickup, it’s about time that we got some confirmation that the Cybertruck wasn’t going to be delayed, yet again.
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