Elon Musk

Elon Musk said the new plants of Tesla Inc. in Germany and Texas are losing “billions of dollars” as the electric vehicle maker try to increase productionn.

“Both the factories in Berlin and those in Austin they are gigantic money ovens right nowthe CEO said in a video interview with Tesla Owners of Silicon Valley posted online Wednesday.

The comments, part of a larger discussion filmed on May 31offer a new insight into Tesla’s operations in the days before Musk’s decision to cut costs by firing employees. Staff reductions will affect around 10% of the salaried labor force of Tesla for the next three months.

Elon Musk warns that Tesla needs to cut 10,000 employees

Musk also said in the interview that Tesla has struggled to quickly ramp up production in Austin of Model Y SUVs that use the company’s new 4680 cells and structurally integrated battery pack.

To keep up with high demand for its cars, the company said in a shareholder letter in April that it would also build the Model Y SUV with the older 2170 cells in Austin, but the tools needed for that got stuck in chinaMusk said.

“This will all be fixed very quickly, but it requires a lot of attention, and it will take more effort to get this factory into high-volume production than it would to build it in the first place,” Musk said of the factory in Austin. Berlin is in aslightly better positionbecause Tesla equipped it to build cars with 2170 cells, he said.

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