Photo: Tesla | Edited
Tesla is ramping up production at two gigafactories simultaneously, which understandably leads to internal competition. After a slower-than-expected start, Giga Berlin ramped up faster the Giga Texas. The latter announced a significant milestone, reaching the 5,000-unit weekly production, but it's six weeks behind Giga Berlin.
Although many think Tesla is fighting a demand problem and doesn't need additional production capacity, the EV maker is still ramping up production at Giga Berlin and Giga Texas. Both factories were once deemed "money furnaces" by Elon Musk, and they need higher production figures to offset fixed costs and become profitable. This is why Tesla would rather lower production at Giga Shanghai and its factory in Fremont than slow down the rhythm in Texas and Germany. After all, both gigafactories benefit from improving production processes, making them more efficient.
Usually, Tesla considers a 250,000 annual production the threshold of mass production, translating into a weekly production rate of 5,000 units. That's why this is an important milestone for new gigafactories. Giga Berlin achieved it on March 25, despite having a slower start. Environmental organizations and the famous German bureaucracy pushed back Giga Berlin's opening and have constantly hindered Tesla operations. Six weeks after the Giga Berlin staff popped the champagne, people in Austin reached the same milestone.
Giga Texas passed the 4,000-unit weekly production mark only a month ago, so the ramp-up is quite impressive. Giga Texas is currently producing the Tesla Model Y in two flavors, one with single-piece rear megacastings and 2170-cell battery packs and the other featuring the 4680-cell structural battery packs. This might be why Giga Texas is a little behind Giga Berlin, as the 4680-cell production had its own problems.
Tesla Model Y was the third most sold car in the world in 2022 and is on track to becoming the sales champion in 2023. The electric crossover accounts for almost all Tesla sales, with the Model 3 in the second position. The Model Y is currently in production at all of Tesla's factories. In contrast, the Model 3 is not assembled at the newest factories in Berlin and Austin. The main reason is that both gigafactories are expected to launch a new Tesla model in production.
For Giga Texas, this will be the Cybertruck. If everything goes as planned, Tesla will also start the Cybertruck production later this year, adding to the Model Y production numbers. Elon Musk announced a delivery event in the third quarter, so the trial production should not be too far. Giga Berlin is expected to add production of the next-generation compact EV that will first launch from Giga Mexico in 2025. The compact EV should be highly popular in Europe, especially as the Continent announced phasing out combustion vehicles by 2035.
With four car factories across three continents, Tesla has an estimated run rate of over 2 million vehicles per year. This is enough to surpass the 2023 guidance of 1.8-2.0 million cars and set the stage for future growth. The only challenge is keeping those orders coming, but Tesla has a lot of wiggle room.
Usually, Tesla considers a 250,000 annual production the threshold of mass production, translating into a weekly production rate of 5,000 units. That's why this is an important milestone for new gigafactories. Giga Berlin achieved it on March 25, despite having a slower start. Environmental organizations and the famous German bureaucracy pushed back Giga Berlin's opening and have constantly hindered Tesla operations. Six weeks after the Giga Berlin staff popped the champagne, people in Austin reached the same milestone.
Giga Texas passed the 4,000-unit weekly production mark only a month ago, so the ramp-up is quite impressive. Giga Texas is currently producing the Tesla Model Y in two flavors, one with single-piece rear megacastings and 2170-cell battery packs and the other featuring the 4680-cell structural battery packs. This might be why Giga Texas is a little behind Giga Berlin, as the 4680-cell production had its own problems.
Tesla Model Y was the third most sold car in the world in 2022 and is on track to becoming the sales champion in 2023. The electric crossover accounts for almost all Tesla sales, with the Model 3 in the second position. The Model Y is currently in production at all of Tesla's factories. In contrast, the Model 3 is not assembled at the newest factories in Berlin and Austin. The main reason is that both gigafactories are expected to launch a new Tesla model in production.
For Giga Texas, this will be the Cybertruck. If everything goes as planned, Tesla will also start the Cybertruck production later this year, adding to the Model Y production numbers. Elon Musk announced a delivery event in the third quarter, so the trial production should not be too far. Giga Berlin is expected to add production of the next-generation compact EV that will first launch from Giga Mexico in 2025. The compact EV should be highly popular in Europe, especially as the Continent announced phasing out combustion vehicles by 2035.
With four car factories across three continents, Tesla has an estimated run rate of over 2 million vehicles per year. This is enough to surpass the 2023 guidance of 1.8-2.0 million cars and set the stage for future growth. The only challenge is keeping those orders coming, but Tesla has a lot of wiggle room.
Giga Texas achieves production of 5k Model Y/week pic.twitter.com/WwZrv3CYae
— Tesla (@Tesla) May 9, 2023
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