Gigafactory Shanghai / Tesla
Electric vehicles are becoming more and more popular and Tesla, being the undisputed leader in this segment, is trying to keep up with the demand. The company stated that the level of orders in Q1 was the highest in its history, and the manufacturer is trying to increase production capacity as soon as possible. According to data provided by Tesla in the Q1 2021 Earnings Report, the company has an installed capacity to produce more than one million units per year.
Tesla tirelessly continues to increase its production capacity, perfecting existing processes and building new factories. In Q1, the company ramped up production of Model Y at the Fremont factory, and almost reached full capacity.
The Model Y ramp in Shanghai is also developing successfully. Tesla expects Giga Shanghai to continue to increase production on a quarterly basis throughout the year. Also, the company said it recently improved its domestic supply sourcing ratio to over 90%. The steady increase in production allows the factory to continue exporting vehicles to Europe and the Asia-Pacific region as planned.
Thus, the existing factories of the company already have an installed capacity for the production of more than one million units, which brings the company closer to a new record in 2021. In Fremont alone, Tesla can produce 100,000 units of Model S/X and 500,000 units of Model 3/Y. Of course, it should be kept in mind that the production of Model S/X is at the stage of expansion and the full potential will become available later this year. The Shanghai factory has an installed capacity to produce 450,000 units of Model 3/Y.
It should be noted that the installed capacity does not mean the current production rate of the factories. Production rate depends on many different factors such as factory ramp, supply chain ramp, downtime related to factory upgrades, national holidays, and other factors.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.