Tesla has significantly increased its production capacity at four of its existing car factories – their total capacity reaches two million cars a year. This follows the recent second quarter financial report, which the well-known electric vehicle maker closed with record numbers. In April-June, Tesla generated $16,934 billion in revenue, $400 million higher than the Wall Street consensus, despite the first drop in sales in two years due to a 22-day shutdown of the Shanghai plant (which resulted in a production cut of more than per 50,000 vehicles).
In just one quarter, Tesla impressively increased production capacity across all of its factories by a factor of 1.6, from 1.2 million to 1.9 million per year. And this is certainly a significant achievement. Here is the manufacturer’s announced capacity at the end of the first quarter of 2022 (left) compared to the new capacity notified today at the end of the second quarter of 2022 (right):
Another modernization of the main plant in Fremont helped increase the production of Model 3 and Model Y by another 10% – from 500 thousand to 550 thousand cars a year. The other day it was reported about the release of the two millionth electric car. At the same time, Tesla’s total electric vehicle sales reached almost 3 million units.
Tesla’s Fremont plant produces its 2 millionth electric vehicle, with total sales reaching nearly 3 million
Tesla’s Shanghai Gigafactory grew the most, from 450,000 to over 750,000 vehicles a year, making it by far the largest EV plant in the world. It was previously reported that after the launch of the second Giga Shanghai (most likely this will happen at the end of 2023), the total capacity of Tesla factories in China will be 1.5 million cars per year . In the report, Tesla noted that after being forced to shut down due to the novel coronavirus outbreak in the last month of the quarter, the plant set a record for production, and recent upgrades will ensure a steady further ramp-up of production. The company also released new photos of Giga Shanghai.
In March-April, Tesla opened two new plants with an interval of two weeks – the first European Giga Berlin-Brandenburg and another in the US Giga Texas. Both have already begun mass production of the Model Y compact crossover, and the automaker is now gradually ramping up production. For both plants, the same capacity is indicated – 250 thousand each. Interestingly, at Giga Texas, the company reached such a capacity even with the preliminary design of battery packs. Engineers are now setting up lines where the Model Y will be produced with a new streamlined design and in-house developed 4680 cells (the battery pack is part of the body structure that connects the front and rear of the underbody). This will ensure a further increase in production volumes.
New photos of Giga Texas:
And more shots of the German Giga Berlin-Brandenburg – there the team has already reached the pace of producing 1000 Model Y weekly, using classic 2170 battery cells:
At the beginning of the year, Elon Musk assumed that Tesla could ship 1.5 million cars to customers by the end of 2022. This coincides with the preliminary estimates of industry observers. Tesla has already shipped 563,295 vehicles to customers in the first half of the year. That is, in order to achieve the goal, it is necessary to double the result of the previous two quarters and sell almost 940 thousand cars. Under the current circumstances, it seems unrealistic Tesla, like other global brands, is experiencing significant inflationary pressure in the field of raw materials and logistics, which negatively affects pricing policy. At the same time, amid the approaching global recession due to the war in Ukraine, Tesla, like other large IT companies, is slowing down hiring and reducing individual teams , but Tesla has repeatedly proven that it is capable of surprising and accomplishing such technological feats.