Summary
– Tesla reports stable installed annual vehicle capacity of 2.35 million units and plans to increase manufacturing output to three million vehicles
– In Q1 2024, Tesla produced 433,371 EVs, a 2% decline from the previous year due to production challenges
– Tesla’s manufacturing plants include Fremont, Giga Nevada, Giga Shanghai, Giga Berlin, and Giga Texas
– Model Y and Cybertruck production in Texas reached record levels, with production rates exceeding 1,000 Cybertrucks in a single week
– Tesla announces plans for future models and production growth, with a focus on launching new vehicles ahead of the previously communicated timeline for the second half of 2025
Article
**Tesla Reports Stable Installed Vehicle Capacity of 2.35 Million Units**
As the world’s largest all-electric car manufacturer, Tesla has revealed its stable installed annual vehicle capacity of 2.35 million units in its Q1 financial report. The company has outlined plans to launch new models and increase its manufacturing output to three million vehicles. In 2023, Tesla produced over 1.84 million all-electric cars, marking a 35% increase from the previous year. While it is expected that production will exceed two million units for the first time this year, Q1 of 2024 saw a 2% decline to 433,371 units due to various factors.
**Overview of Tesla EV Production so far in 2024**
During the first quarter of 2024, Tesla produced 433,371 EVs, which was a 2% decrease compared to the previous year. The decline was attributed to factors such as the production ramp of the updated Model 3 at the Fremont factory and factory shutdowns at Gigafactory Berlin due to shipping diversions caused by the Red Sea conflict and an arson attack. Despite the slight decline, Tesla’s Fremont factory has the potential to produce over 550,000 Model 3/Model Y vehicles annually, as well as up to 100,000 Model S/Model X units. In Q1, the factory produced fewer Model 3 units due to production line changes to the updated model.
**Insight into Tesla’s Manufacturing Plants**
Tesla’s first gigafactory in Fremont, California produces lithium-ion battery cell plant products in partnership with Panasonic, including 2170-type cylindrical battery cells. Production of these batteries is expected to increase by about 10 percent. Additionally, the plant is set to be expanded with a $3.6 billion investment to accommodate the production of the 4680-type cells and Tesla Semi electric trucks. The Tesla Giga Nevada plant, also known as Tesla Gigafactory 1, is set to increase production capacity as well, with plans for the production of the 4680-type cells and Tesla Semi trucks.
**Expansion Plans at Tesla Giga Shanghai and Tesla Giga Berlin**
Tesla Giga Shanghai has the potential to produce over 950,000 Model 3/Model Y vehicles per year and serves as the company’s export hub. The plant experienced a decline in production during the first quarter due to seasonality and planned shutdowns around Chinese New Year. Similarly, Tesla Giga Berlin’s production of the Tesla Model Y was down sequentially in Q1 due to the Red Sea conflict and an arson attack that impacted the factory. Despite production disruptions, the COGS per unit continued to decrease sequentially.
**Model Y and Cybertruck Production Success at Tesla Giga Texas**
Tesla Giga Texas in Austin began production of the Tesla Model Y in April 2022, reaching a production rate of 5,000 Model Y units per week in May 2023. Production at the factory recently hit an all-time high, with COGS per unit reaching an all-time low. The site produces two versions of the Model Y, including one equipped with 4680-type cylindrical cells and a structural battery pack. Tesla Giga Texas has also been producing Tesla Cybertruck pickups powered by the 4680-type battery cells since Q4 2023. The ramp-up of the Cybertruck model has been successful, with production reaching over 1,000 units in a single week in April.
**Future Expansion and Updates from Tesla**
In March 2023, Tesla announced plans to build its sixth gigafactory in Santa Catarina, Mexico, which will be used to produce next-generation electric vehicles. The company also updated its future vehicle lineup to accelerate the launch of new models ahead of schedule. New, more affordable vehicles based on current and next-generation platforms will be produced at existing production lines, with the combined maximum capacity of the plants set to increase to close to three million units, a 50% increase from 2023. This expansion reflects Tesla’s commitment to innovation and growth in the electric vehicle market.
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