Not long ago, Tesla Inc. TSLA CEO Elon Musk called out Giga Texas along with Giga Berlin as “money furnaces,” as they were losing billions of dollars. Things might have changed now, at least in the company’s Texas plant, if reports are anything to go by.
What Happened: Tesla's Giga Texas plant is planning to step up production and looks to produce 75,000 units of Model Y electric SUVs in the first quarter of 2023, Electrek reported, citing a source familiar with the matter.
This would mean a weekly production rate of 5,000 units.
See Also: Tesla Touts Brand Loyalty, Poaches 30% New Customers From Toyota And Honda: Study
The Giga Texas plant was churning out Model Ys at a weekly rate of 1,000, reports said in late August. The same milestone was achieved by the company’s Giga Berlin in June. The German unit's weekly production rate increased to 2,000 per unit by early October.
Both the Giga Texas and Berlin plants became operational this year.
About half of the company’s current production comes from its Giga Shanghai plant. With the ongoing COVID-19 scenario in China, Tesla investors fear production disruptions at the plant. The company, however, hasn’t yet disclosed any impact and is reportedly running the plant under a closed-loop system.
The news of production scaling at the company’s newest Giga factories should come as a relief.
Price Action: Tesla closed Wednesday's session 7.67% higher at $194.70, according to Benzinga Pro data.
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