Tesla Reaches Annual Installed Production Capacity of Over 1M Vehicles

Eva Fox by Eva Fox October 23, 2021

Tesla Reaches Annual Installed Production Capacity of Over 1M Vehicles

Photo: Hannah Schwär

Tesla's ability to ramp up production is very impressive. In 2021 the company was able to significantly increase production and currently has an installed capacity of 1 million vehicles.

Tesla strives to produce as many cars as possible, therefore one of its main tasks today is to achieve the fastest possible rate of production. While Giga Texas continues construction, and Giga Berlin faces approval delays, Giga Shanghai and Fremont are operating great, achieving new production records. Tesla has achieved an installed capacity to produce more than 1 million vehicles per year, per the earnings report and the company's statement during the Earnings Call.

According to information from the report, the manufacturer has the following annual installed production capacity:

Factory in Fremont:  Model S/Model X 100,000
                                  Model 3/Model Y 500,000
Giga Shanghai:         Model 3/Model Y >450,000

In addition, during the Earnings Call, CFO at Tesla Zachary Kirkhorn also said that the company has an installed capacity to produce more than 1 million vehicles per year. He emphasized that this was made possible by Giga Shanghai and progress in increasing production of Model S and X, although the company still has some additional work to return to the previous production volumes of these models.

“We were also able to achieve an annualized production run rate of over 1 million cars towards the end of the quarter. The increase in production rate has primarily been driven by further ramping of the Model Y at our Shanghai factory. Additionally, we have made great progress increasing production volumes of Model S and have recently started the ramp and deliveries of Model X. It will take a bit more time to get this program back to prior volumes but based on demand, we are targeting to exceed historical production levels.”

Although Tesla has nearly doubled deliveries, the company continues to face shortages of auto parts and global logistics problems. Because of this, the manufacturer's factories are actually not working at full capacity, which slows down development. Nevertheless, Tesla has a positive outlook and maintains its goal of growing at an average rate of 50% per year.

© 2021, Eva Fox | Tesmanian. All rights reserved.

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






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