Global manufacturer of automobiles, Tesla, announced on Monday that its German factory in Brandenburg, close to Berlin, is now manufacturing 4,000 cars per week, quadrupling from May when Chief Executive, Elon Musk had equated investment in Tesla’s new factories to “gigantic money furnaces.”
The Berlin factory achieved its production goal three weeks earlier than the manufacturing timetable examined by Reuters.
On Monday, Tesla stock was up 4% at $204.93.
At its new weekly production, the German Tesla plant would produce more than 200,000 vehicles yearly. The business has stated that the Brandenburg plant will have a maximum annual capacity of 500,000 automobiles, or nearly 10,000 per week.
In Shanghai, where Tesla intended to maintain an average total output of 13,000 Model Ys per week – about 1,000 below full capacity – and an additional 7,000 Model 3s in February and March, production from the German plant has now surpassed that of the Shanghai plant by a factor of three.
By the week of March 13th, Tesla intended to increase production at Brandenburg to 4,000, and by the end of June, to more than 5,000. In October of last year, it reached 2,000 units produced every week, and in December, it reached 3,000 units.
The Brandenburg facility finally began operating in March after a sluggish start. Due to the difficulties of boosting production, Musk referred to Tesla’s newest plants in Germany and Austin as “gigantic money furnaces” in a May interview.
Tesla would be able to employ a larger portion of its Shanghai production for countries outside of Europe, including Thailand, where it has just started selling, thanks to the increase in output in Germany.
Although Tesla said last week that it would concentrate cell production in the U.S. due to incentives provided by the Inflation Reduction Act, the company has already started assembling batteries in Germany that will soon be used in vehicles made at the facility.
The American electric vehicle manufacturer said last Wednesday that it is also getting ready to create electrodes and other cell components, some of which will be delivered from its facility in Gruenheide, Brandenburg, to the United States.
On Wednesday, when the firm hosts its investor day, Tesla is scheduled to provide a strategy update to analysts.