Photo: Tobias Lindh/YouTube
Analysts from investment firms visited Tesla Giga Berlin to look at the progress. In a note, a UBS analyst wrote that parts of the factory were already ready to produce 10,000 Model Ys per week. In addition, he sees Tesla Giga Berlin at a 30% gross margin.
Several investment firm analysts visited Tesla Giga Berlin this week, where they met with the head of Tesla's investor relations, Martin Viecha. Some of the analysts have already shared their first impressions in memos and a UBS representative has become one of them.
During the meetings, Viecha focused on explaining how Tesla plans to increase capacity and further reduce unit costs. He said the boost to Giga Berlin and Giga Texas would be the basis for lowering higher costs. Tesla stressed that Berlin could become the most profitable gigafactory as production costs approach those of Shanghai and Europe's product mix is the highest in the world, much higher than China's, according to a UBS note, part of which was shared by @TAktionare/Twitter. The analyst emphasized that the firm agrees with this assessment, and therefore, expects auto gross margin to exceed 30% from the second half of 2022.
“Tesla highlighted that Berlin could become the most profitable gigafactory as COGS will get close to Shanghai levels (ie, much better than Fremont) while European product mix will be the highest in the world, much higher than China. We agree with this assessment, which is why we expect auto gross margin to exceed 30% from H2/22 onwards.”
The analyst noted that Gigacasting is a key innovation that is being implemented at Giga Berlin, according to part of a note posted by @shinuvasudevan/Twitter. The Giga Press replaces many of the welding robots traditionally used to make the rear-end underbody part. He noted that by the end of the year, Tesla plans to make the front-end underbody part also a single-piece, which will allow for the use of a 4680 structural battery pack.
“The key process innovation is Gigacasting, which replaces an army of welding robots for a single rear-end underbody part. By year-end, Tesla plans to do the front-end underbody also as a single die-cast piece with a total of 8 Gigapresses, enabling the use of a 4680 structural battery. Tesla expects to have in-house 4680 cell supply up and running by then next door.”
The analyst could see with his own eyes that the factory floors were very busy, indicating strong progress towards a production capacity of 5,000 Model Ys per week, which is scheduled to be reached by the end of this year or at the beginning of 2023. The analyst noted that parts of the plant are even ready to produce 10,000 vehicles a week.
“We were the first broker to get a Giga Berlin tour together with key clients. We saw a very busy factory floor obviously making good progress towards the 5,000 car/week target run-rate by year-end. Parts of the plant are even ready for 10k vehicles/week.”
“Parts of the plant are even ready for 10,000/week” .. pic.twitter.com/mI83hlnuaq— shinu vasudevan (@shinuvasudevan) August 26, 2022
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