The German plant that will eventually help Tesla ramp up production of the Model Y, one of the company’s most popular cars, has been dealing with challenges. Located in a drought-stricken part of the country, the plant requires large amounts of water to do such things as paint exteriors, cast vehicle parts, and excellent heavy machinery. But water shortages aren’t the only issue. Local activists fighting the plant on issues ranging from tree preservation to saving sand lizards are also slowing progress.
Earlier this year, the U.S. carmaker posted on X, the social media platform formerly known as Twitter, that it hit 5,000 cars weekly in March at the factory in Gruenheide near Berlin. But workers who declined to be named told Business Insider that production has since slowed considerably. The plant now produces about 4,350 vehicles a week, down from the initial target of 5,000. And it looks like the company plans to reduce that number further, according to a Business Insider report citing internal documents and anonymous sources.
Specifically, the report says Tesla will cut its internal target from 5,000 to about 870 cars daily in July and August. That’s down from about 2,500 vehicles in June and 1,600 in October, which was the initial goal of the facility known as Gigafactory Berlin.
That is a significant drop in a short time. But the report also notes that Gigafactory Berlin is still producing more than a million batteries each year, which helps the overall EV maker meet its battery production and vehicle sales targets.
The Gigafactory will be able to produce 1 million EVs each year once it hits its total capacity, which is expected to happen by 2023. It will be able to make 100 gigawatt-hours of batteries each year once it reaches total capacity, which is expected to happen by 2020.
As for the upcoming Model Y ramp-up, a few weeks ago, the company announced that Gigafactory Berlin was ready to go “full speed ahead.” That would be a significant step forward as it is the first European factory to make the vehicle with the company’s single-piece rear casting and the unified front battery pack. The company uses those components to cut assembly times by 50% and increase production efficiency.
Nevertheless, even if the Gigafactory could meet its current goals, the company may need to increase production at other facilities to compensate for its German plant’s slower output. That’s why it has applied to the state government to double the factory’s capacity, bringing it to a million EVs and 50 billion kilowatt hours of battery storage each year. That will require approval from the state government, which has yet to comment. Henry Blodget writes about how the use of anonymous sources sucks and how it’s used to spin stories. But he admits that even on-the-record sources “spin and lie and exaggerate and plant information when they’re talking on background, knowing they won’t have to defend their statements publicly.” Sadly, this is true at every news organization in America.
