Tesla’s Grünheide Factory Faces Production Challenges
Almost a year after the commencement of production in March 2022, Tesla’s Grünheide factory in Berlin reached a significant milestone. The company proudly announced that it was achieving a production rate of 5,000 Model Y vehicles per week. This output roughly equates to an annual production of around 250,000 electric cars, a threshold that Tesla CEO Elon Musk often refers to as mass production.
However, recent reports suggest a deviation from this anticipated trajectory. In June, Business Insider reported on what they described as a “crisis” unfolding at the German Gigafactory. The original plan to accelerate production and expand the workforce to achieve a rate of 6,000 Model Y units per week was put on hold. Extra shifts were canceled, and a considerable number of temporary workers were released from their positions.
While Tesla acknowledged the reduction in extra shifts and the need for temporary staff, they maintained that the factory’s ramp-up was still progressing successfully. Nonetheless, Business Insider (with access behind a paywall) disclosed on Tuesday that the remarkable 5,000-unit Model Y production achieved in a single week back in March might have been an isolated event. According to accounts from Gigafactory employees and internal documents, the target for July and August was set at 870 Model Ys per day, equivalent to 4,350 units per standard five-day week. Reportedly, some days fell short of even this revised goal. For example, on July 25th, the factory managed to produce only 692 electric cars, resulting in a weekly output of approximately 3,500 Model Ys over a five-day period. These figures align with Tesla’s previously reported milestones between December 2022 and February.
Model Y Production Figures
|Quarter||Model Y Production (units)||Weekly Average|
|Q2 (Current Year)||45,327||~3,500|
|Q1 (Current Year)||38,600||~3,000|
The decline in production is attributed to a reduced workforce due to increased sick leaves, compounded by the summer holiday season in July and August. This decrease in staff availability is identified as the primary factor contributing to the production dip. The revelation that the actual Model Y production rate in Germany has been around 5,000 units per week corresponds with estimates provided by the observant individual known as @TroyTeslike.
Moreover, @TroyTeslike’s calculations for the entire second quarter of the current year estimate Model Y production at 45,327 units in Grünheide, averaging approximately 3,500 units per week across 13 weeks. The preceding quarter reportedly saw the production of 38,600 units, averaging nearly 3,000 units per week.
With the factory’s approved annual capacity standing at 500,000 Model Y units, equivalent to almost 10,000 units per week, Tesla aims to amplify both production capacity and workforce, as indicated by new permit applications disclosed in July.
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