The transition of the world to electric vehicles and lithium-ion batteries requires a significant expansion of production capacity. Tesla will build factories on all key continents to reach a production capacity of 20 million vehicles a year by 2030.
Tesla has an extremely ambitious goal: to reach a production capacity of 20 million vehicles a year by 2030. This will require the company to build about sevenmore Gigafactories, be able to obtain minerals for the production of batteries, and also so that suppliers can grow as fast as Tesla itself. At first glance, this goal seems unattainable, but there is no need to rush to conclusions.
Tesla CEO Elon Musk is known for his extremely ambitious goals. Although he does not always deliver his promises on time, he always keeps them. The head of the company has repeatedly made bold predictions about the development of Tesla and turned out to be right. At the moment, it is difficult to get an unambiguous answer about whether the manufacturer will achieve the goal by 2030, however it has the necessary potential for this, and most importantly, a great desire.
In order to reach a production capacity of 20 million vehicles a year by 2030, Tesla needs to have factories in all key markets and on all continents (obviously not including Antarctica). The company has three manufacturing facilities in the US, two of which make vehicles. Currently, the Fremont factory is the main manufacturing center for Model S, Model 3, Model X, and Model Y for North America. However, Giga Texas is in the ramp-up phase, and within the next 1-2 years it will achieve high productivity to support the company in achieving its goal.
Tesla's European factory, Giga Berlin, is also in the process of ramping up production. In the next 1-2 years it will be able to achieve high production capacity, delivering hundreds of thousands of electric vehicles annually. In addition, an expansion is planned for it, which will ensure the production of about 2 million cars a year.
Besides this, Tesla has a factory in China, which is currently the main export hub, delivering cars to Europe, Asia, and Australia. After the recent modernization of production facilities, the factory can produce 1.1-1.2 million vehicles per year, which is the largest contribution of all existing factories. It is worth noting that the factory reached this target in its third year of operation, which is a good indication of China's potential as a manufacturing location, and highlights Tesla's management's ability to properly prioritize factory locations.
“We’re building factories around the world,” said Tesla Chair Robyn Denholm to the National Press Club in Canberra on Wednesday. “Our view is the world is going to electric vehicles and to batteries that are lithium-ion based and we need to be in all of the major markets around the world.”
“Producing vehicles on continents is important because, again, when you're setting a supply chain for the long term, you want those miles those cars travel before someone actually owns them to be the shortest possible, and that includes shipping and sea freight because all of those processes add to CO2 emissions,” she said.
“Markets around the world are really important and so having manufacturing capability on each of the continents is important,” Denholm added.
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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.