Tesla is doing all it can to increase the car production capacity of the giant factories in Texas and Shanghai in the United States, in response to the fierce competition caused by traditional car manufacturers scrambling to launch new electric vehicles.
Tesla, now the world's largest electric car maker, completed an expansion of its Shanghai plant on Monday, where it makes the Model Y SUV and Model 3 sedans for customers in Asia and Europe. Last week, Tesla announced that its 10,000th Model Y rolled off the assembly line at its giant Texas factory, a major milestone in ramping up production of the compact electric crossover there.
As a long-term leader in the electric vehicle space, Tesla has always faced competition from emerging car companies and established automakers. Electric vehicles took center stage at last week's Detroit Auto Show, with several major brands vying for the top spot. Ford began delivering the F-150 Lightning pickup to customers in June, while Hyundai, Jeep, and others are planning multiple new electric models in the coming years.
Tesla models account for four of the five best-selling electric vehicles in the U.S., according to market research firm Experian. Tesla accounted for nearly two-thirds of all new electric vehicle registrations in the U.S. But if Tesla doesn't ramp up global production capacity, those promising rivals could threaten the company's dominance.
In Shanghai, Tesla will test the new production line in November. The $170 million investment is aimed at helping Tesla ramp up production, producing about 2,200 more Model 3s and Model Ys per week.
Production at Tesla's Texas factory has been limited by a shortage of new 4680 batteries. Panasonic plans to help address the bottleneck in early 2024 when the company's $4 billion battery factory in Kansas will begin producing the more advanced batteries.
Once mass production is achieved in Texas, Tesla can focus on launching its long-awaited electric pickup, the CyberTruck. Tesla CEO Elon Musk said production of the car will begin next summer.
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