Tesla Plans to Ramp up Production in Q4, whose Output in 2023 Expected to See a More-Than-50% Increase

SHANGHAI, Oct 9 (SMM) -  It is recently reported that Tesla planned to significantly increase its global output of Model Y and Model 3 in the fourth quarter as well as in 2023, according to the internal plans and two people familiar with the matter. Tesla's new factories in Austin, Texas and Berlin, Germany are said to be speeding up the production.

More specifically, Tesla planned to produce nearly 495,000 units of Model Y and Model 3 vehicles in the fourth quarter of this year. These two models are Tesla's two best-selling models, accounting for 95% of Tesla's total output. According to the company's production plan, its vehicle output is expected to increase by more than 50%, about 10 times the increase of the global car market. Tesla itself estimated that the combined output of Model Y and Model 3 will reach 1.59 million unites in the first three quarters of 2023. If that goal is achieved, then Tesla’s sales of electric vehicles throughout 2023 are likely to overtake 2.1 million units. The figure beat the forecast of Dan Ives, an analyst at brokerage Wedbush Securities. Ives has been bullish on Tesla's prospects, who previously predicted that Tesla will deliver 1.39 million units of electric vehicles this year and 2 million units in 2023.

It is worth mentioning that if Tesla succeeds in selling 2.1 million units of electric vehicle in 2023, its sales will surpass that of Volkswagen's Audi brand and be close to that of BMW. In 2021, BMW sold 2.5 million units of cars.

Elon Musk told analysts last quarter that Tesla was likely to turn out 40,000 units of vehicles per week before the end of 2022. Internal forecasts disclosed by the media showed that Tesla hoped to maintain this production rate in the first quarter of 2023. But, it will depended on the capacity of Tesla's factories in Austin, Texas, and Grunheide, Germany.

According to forecasts, the production capacity of the Austin plant will reach 101,000 units by the end of the third quarter of 2023, while that of the Glenhead plant will increase from 51,000 units to nearly 90,000 units. Austin and Glenhead have previously been operating at lower capacity, so it is no surprising if the two largest plants see a surge in capacity.” said Sam Fiorani, vice president at Auto Forecas Solutions (AFS) who was responsible for Global Vehicle Forecasting.

He also suggested that Tesla's output in 2023 would not exceed 2 million units because he believed the company had not reached that level of production capacity and that the whole auto industry was still struggling with supply chain issues.   It is expected that deliveries of Tesla will stand close to 358,000 units in the third quarter, or surpass the new record of 310,000 units set at the beginning of this year.