Tesla Aggressively Increases Production

The electric vehicle carmaker wants to produce 20 million cars a year by 2030.

Tesla wants to continue to dominate the automotive industry in the coming years.

After seeing the rivals get closer, Elon Musk's group has unleashed an offensive in recent months to repel them. 

The Austin, Texas-based automaker has declared a price war on its rivals in China and the United States, the world's two largest auto markets. Tesla has lowered the prices of all its models, from the popular Model 3 and Model Y to the very luxurious Model X and Model S.

To avoid being completely left behind, Tesla's competitors responded by lowering the prices of their cars, sometimes at the risk of undermining their profit margins. 

Tesla  (TSLA) - Get Free Report and its charismatic Chief Executive Officer Elon Musk also crushed the competition in terms of production. Last year, the automaker produced 1.37 million vehicles and plans to manufacture 1.8 million units this year. 

To achieve this ambitious goal, Tesla has opened at least one factory on the three continents where most automotive sales are concentrated. In North America, factories in Fremont in California and Austin in Texas. In Asia, a factory in Shanghai,  China and in Europe, a factory near Berlin in Germany. The company announced on Mar. 1 that it would open a fifth factory in Mexico.

While waiting for the construction of the new Mexican factory, the German production site has just taken an important step. It has just increased its weekly production.

"Giga Berlin hits 5k builds/week—1 year after delivering the first vehicles to customers," the carmaker announced on Mar. 25.

This is an important step for this plant which mainly serves the European market. It has a production capacity of 250,000 vehicles per year, according to Tesla. On Feb. 27, the automaker announced that Giga Berlin was now producing 4,000 vehicles per week.

Adding 1,000 vehicles produced per week in less than a month is quite a feat, especially since Giga Berlin is only open five days a week. This represents 25% increase in a month.

"Big congratulations to the Tesla Germany team!!" Musk celebrated on Mar. 25.

In Berlin, the factory that began operating on March 22, 2022, Tesla only produces the Model Y SUV. 

Shanghai, which has a production capacity of 750,000 vehicles per year, produces the Model Y and the Model 3 sedan, according to its website.

In Austin, which has an annual production capacity of 250,000 vehicles , Tesla manufactures the Model Y and soon the Cybertruck, its very first pickup truck. Fremont produces all Tesla car models with an annual production capacity of 650,000 vehicles.