Feature image: Tesla
Tesla continues to ramp up production, maintaining its 2020 target of 500,000 vehicles, despite the challenges posed by the COVID-19 pandemic. Achieving this goal depends primarily on the quarterly growth in Model Y production in Shanghai as well as further improvements in logistics and delivery efficiency at higher volumes.
Tesla has recently increased the capacity of Model 3/Model Y to 500,000 units a year. In order to do this, the company restarted its second paint shop, installed the largest diecasting machine in the world, and upgraded the Model Y general assembly line. Production should reach full capacity toward the end of this year or the beginning of next year.
Model 3 production capacity has increased to 250,000 units a year. Tesla reduced the price of Model 3 to 249,900 RMB after incentives, making it the lowest-price premium mid-sized sedan in China. This was enabled both by lower-cost batteries and an increased level of local procurement. As a result of this shift in cost and starting price, the company recently added a third production shift to our Model 3 factory.
Construction of the Gigafactory in Berlin continues to progress rapidly. Buildings are under construction and equipment move-in will start over the coming weeks. Tesla reported that the Giga Berlin team continues to grow. The start of production is expected in 2021.
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