Tesla is preparing a mysterious production capacity increase

Tesla is apparently preparing a somewhat mysterious production capacity increase at Fremont factory in California, according to an email by Jerome Guillen, Tesla President of Automotive, to employees.

Based on sources familiar with Tesla’s production, the automaker achieved a production rate of 1,000 Model 3 vehicles per day toward the end of last quarter.

Over the entire quarter, Tesla averaged 797 Model 3 vehicles per day and 160 Model S and Model X vehicles per day, according to Tesla’s quarterly data.

Now Tesla is working on increasing the capacity.

Guillen sent an email to employees in which he said that he couldn’t “be too specific”, but Tesla is working on raising output (via Bloomberg):

The company is “making preparations” to raise output at its auto plant in Fremont, California, Tesla’s automotive president, Jerome Guillen, said in an email to employees on Tuesday. “While we can’t be too specific in this email, I know you will be delighted with the upcoming developments.”

The executive also commented on Tesla’s production output, efficiency, and quality over the last quarter.

Bloomberg report:

Guillen’s message also said that the company “hit new records in all production lines for output and efficiency” in the most recent quarter, both in Fremont and in Nevada, and that “quality is also reaching record highs.”

Tesla CEO Elon Musk had previously said that the automaker aims to have a production capacity of 7,000 Model 3 vehicles per week in Fremont by the end of the year and 3,000 units per week at Tesla’s upcoming Gigafactory 3 in China.

Electrek’s Take

That’s curious. It’s interesting that he can’t reveal details about the production increase but employees will be “delighted with the upcoming developments.”

It sounds like Tesla is already reaching capacity for Model 3 production, but the company could be talking about Model S and Model X production, which we heard is being restructured to make space for the upcoming Model Y.

This situation likely has something to do with this in my opinion, but I am open to other explanations.

If you know what is happening, you can reach out to me.