Tesla Continues to Ramp Up Production, Maintains 2020 Target of 500K Vehicles

by Eva Fox October 21, 2020

Tesla Continues to Ramp Up Production, Maintains 2020 Target of 500K Vehicles

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.

Fremont
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.

Shanghai
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.

Berlin-Brandenburg
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.

© 2020, Eva Fox. All rights reserved.

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Article edited by @SmokeyShorts, you can follow him on Twitter




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