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The firm announced on Monday that Tesla’s German factory in Brandenburg, close to Berlin, is now producing 4,000 cars per week. This is a fourfold increase from May, when Chief Executive Elon Musk equated investment in Tesla’s new factories to “gigantic money furnaces.”
The Berlin plant hit the production target three weeks ahead of a production schedule reviewed by Reuters.
Shares of Tesla were up 1.9% at $200.70 in U.S. premarket trading.
At its new weekly output, Tesla’s plant in Germany would have annual output of over 200,000 vehicles. The company has said that the maximum capacity planned for the Brandenburg plant is 500,000 cars a year, nearing 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 could employ a larger portion of its Shanghai production for countries outside of Europe, including Thailand, where it has just started selling, thanks to the increased output in Germany.
Tesla has started assembling batteries in Germany that will soon be used in vehicles made at the facility, but the company announced last week that it would concentrate cell production in the U.S. due to incentives provided by the Inflation Reduction Act.
Tesla announced on Wednesday that it is getting ready to create electrodes and other cell-related parts at its Gruenheide, Brandenburg facility and would ship some of them to the US.
Tesla will update analysts on its strategy on Wednesday when the company has its investor day.
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