Tesla Increases Production at Giga Texas – Report

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Tesla (NASDAQ:TSLA) has been gradually ramping up production at its Gigafactory in Texas, managing to produce thousands of units per week. The company is aiming to produce 10,000 vehicles per week by the end of the year.

Tesla has invested billions into the project and will not recover that money until the plant can reach volume production.

According to a report by Electrek, a source said that Tesla is making as many as 5,000 vehicles available to deliver per week from the Gigafactory. However, “it’s not clear if that’s a sustainable rate.”

The electric vehicle maker has managed to slowly increase production since adding the Model Y in 2021. The Model Y is supposed to be built with the new 4680 battery cell and structural battery pack. Tesla is making its own 4680 battery cells and plans to rely on both its own production as well as supply from established manufacturers. But the new batteries have been bottlenecked, slowing production.

Some buyers taking delivery of the Model Y Long Range from Gigafactory Texas are being told by their Tesla advisors that their new vehicle is equipped with the 2170 cells and not the new 4680 format. Samsung SDI (KS:006400) is reportedly setting up a new pilot production line to build 4680 battery cells for Tesla, ordering similar manufacturing equipment as Tesla from Hanwha and Koem.