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00:00Now Elon Musk says Tesla's new plants in Germany and Texas are losing billions of dollars as the electric vehicle maker tries to ramp up production. Let's get more on that story. Laura Wright has details for us. Laura what has the trading to the downside in after hours partly in response to the release of a video interview where Elon Musk stated that Tesla's new giga plants are gigantic money furnaces. Look demand is hugely outweighing supply. Tesla which is why the new giga plants in Austin Texas and Berlin were opened. But it's taking more time for them to become fully online both plants focusing on model Y production. Eventually the plan is that Austin Texas will also make the much awaited cyber trucks. That said Tesla's still recovering from March when its Shanghai plant shuttered for three weeks because of rolling lockdowns in China. That's led some analysts to downgrade their price targets in recent days. Musk admitted to Bloomberg that Tesla will be cutting their workforce by 10 percent within the next three months. That gave the share price a pop on Tuesday. Now back above 700 dollars. But overall analysts do want to see Tesla's goal of 50 percent average annual vehicle delivery growth impeded because that would signal that the electric vehicle maker cannot promise on that future delivery of growth.

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Musk Says New Tesla Plants Are Losing Billions

Elon Musk called Tesla Inc.’s new plants in Germany and Texas “gigantic money furnaces” in comments to Tesla owners posted online Wednesday, as the electric-vehicle maker tries to ramp up production. Laura Wright reports on Bloomberg Television. (Source: Bloomberg)

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