Tesla’s third-quarter financial report shows that production of the Model 3 and Model Y at its Fremont plant in California increased by 25% month-on-month, indicating that the annual production capacity is expected to reach 1 million vehicles.
Tesla currently manufactures cars at its Fremont and Shanghai factories. The combined annual production capacity of both factories is 840,000 vehicles.
From the second quarter to the third quarter of this year, the annual production capacity of Tesla Model 3 and Model Y increased from 400,000 units to 500,000 units. Over the past two quarters, Tesla expanded its production capacity by ramping up production and activating new production lines.
To promote the development of electric vehicles, Tesla’s production layout is not limited to Northern California. The company has also established a super factory in Shanghai, China, producing the Model 3 with an annual capacity of 250,000 vehicles (as detailed in its third-quarter financial report). Tesla has also provided an update on the latest progress at the Shanghai factory.
Tesla stated: ‘The annual production capacity of the Model 3 at the Shanghai factory has been increased to 250,000 units. After discounts, the price of the Model 3 in the Chinese market has dropped to 249,900 yuan, making it the most affordable high-end mid-size sedan in China. This price reduction is due to lower battery costs and an increased proportion of localized sourcing. Due to changes in the cost structure and starting price, we have recently added a third shift to produce the Model 3 at the factory.’
Currently, the Model 3 is the only Tesla car produced at the Shanghai factory. The company also plans to start production of the Model Y at the Shanghai factory by the end of 2020.
The Fremont factory and the Shanghai factory currently have annual production capacities of 590,000 and 250,000 vehicles, respectively. They are now working towards a target of 1 million vehicles. It is expected that annual output will increase further after Model Y goes into production.
Currently, Tesla has two factories under construction. This is bound to increase its annual production by more than one million vehicles.
