Elon Musk says new Tesla plants are 'money furnaces' losing billions

Elon Musk said Tesla’s new plants in Germany and Texas are losing ‘billions of dollars’ as the electric-vehicle maker tries to ramp up production.

“Both Berlin and Austin factories are gigantic money furnaces right now,” the chief executive officer said in a video interview with Tesla Owners of Silicon Valley posted online Wednesday.

The comments, part of a broader discussion filmed May 31, offer new insight into Tesla’s operations in the days leading up to Musk’s decision to cut costs by laying off employees. The reductions will affect about 10 per cent of Tesla’s salaried workers over the next three months, or