Giga Berlin and the Tesla Model Y
Giga Berlin just reached a 3,000 per week production run rate on the Model Y, according to an announcement from Tesla's website. This is a great accomplishment, considering that Giga Berlin just got started this year.
I expect to see this continue to improve and this is a tremendous accomplishment. Giga Berlin and Giga Texas are both moving to high volume production and will eventually surpass the Fremont factory in California in production.
What's great about this production is that it is 50% growth in less than 3 months. The Tesla team is working very hard at Giga Berlin. On October 1, 2022, Tesla announced a 2,000 per week run rate for the Model Y vehicle.
This is an interesting rate of compounding and with a 3rd shift starting this week, we are well on our way to seeing 4,000 Model Y vehicles produced per week in Giga Berlin. Giga Berlin also has some amazing colors, including the quicksilver color, for the Model Y.
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Giga Berlin Future Run Rate
With this 3,000 production run rate and having 2,000 just 2 1/2 months ago, we can say that Tesla produces an additional 1,000 vehicles every 2 1/2 months and that is about 5,000 additional per year. But I think the ramp will go faster than this and be more of an exponential trend.
Giga Berlin would have about 8,000 per week at the end of 2023 if this is the rate of production for the Model Y. I think it will be more around 10,000 per week at the end of 2023. This will be about 520,000 Model Y vehicles per year. Right now, Giga Berlin is creating just over 155,000 Model Y vehicles per year.
Elon Musk has often stated that the advantage of Tesla is in its manufacturing. You have to be able to produce your products cheapy and at scale and with high quality. Tesla has focused greatly on this, along with safety features for their vehicles. The fact that Tesla's update via software over the air updates is a big advantage.
I expect to see Giga Texas in a similar position by the end of 2023, around 500,000 vehicles production run rate. Along with the recent announcement that Tesla is most likely building a giga factory in Mexico, things are looking great for Tesla, despite all the short term FUD and noise.
Will Giga Berlin and Giga Texas reach a 500,000 year run rate in their vehicles for 2023? Are they ramping quickly in production right now?
Congrats to the Giga Berlin team on building 3k Model Y this week! pic.twitter.com/uUTOTRrasX— Tesla (@Tesla) December 18, 2022
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.