Tesla’s just-released its third-quarter financial report showed that the company’s Model 3 and Model Y production at its Fremont plant in California increased by 25% month-on-month, which means that the annual production capacity (of this electric car manufacturer) is expected to reach 1 million vehicles.
Tesla is currently producing cars at the Fremont plant and the Shanghai plant. The combined production capacity of these two plants is 840K vehicles/year.
From the second quarter to the third quarter of this year, the annual production capacity of Tesla’s Model 3 and Model Y increased from 400K to 500K. In the past two quarters, Tesla has increased production and sales and used a new production line.
For the promotion of electric vehicles globally, Tesla’s production work is not limited to Northern California. The company also established a super factory in Shanghai, China, which produces the Model 3, with an annual production capacity of 250k vehicles (mentioned in its third-quarter financial report). Tesla also updated the latest progress of the Shanghai plant.
Tesla said: “The annual production capacity of Model 3 in the Shanghai plant has been increased to 250K. After the discount, Model 3 in China has been reduced to 249.9K RMB, making it the lowest-priced high-end mid-size sedan in the Chinese market. The reduction in vehicle price is due to both the reduction in battery costs and the increase in local procurement. Due to changes in costs and starting prices, we recently added a third shift in the factory to produce Model 3”.
Currently, the Model 3 is the only Tesla’s car produced in the Shanghai factory. The company is also planning to start Model Y production at the Shanghai plant before the end of 2020.
The current annual production capacity of the Fremont Plant and Shanghai Plant is 590K and 250K vehicles, respectively. And now, they are moving to the goal of 1M. It is expected that the annual production will be extended after the production of Model Y.
Currently, there are two more of Tesla’s factories, which are under construction. This will surely increase its annual production rate by more than 1 Million.