Skip to main content

Tesla just took a big step toward its goal of building 500,000 cars annually

Tesla Model S
Image used with permission by copyright holder
Tesla has never been shy about its desire to become a mass-market auto manufacturer. The electric car company is coming closer to making good on that intention, as it has just received permission to dramatically increase the size of the Fremont, California, factory it purchased from Toyota a couple of years ago.

A zoning proposal released by the local government in October revealed Tesla sought permission to double the size of the factory that churns out the Model S and the Model X. The proposal was approved by the Fremont City Council, which means the factory’s size will grow to 9.1 million square feet, up from 4.5 million square feet today.

Recommended Videos

Tesla released a plan that outlines the addition of up to 11 new structures. They range in size from 118,000 to nearly a million square feet. What each building is for hasn’t been made public yet, but city records indicate the additional space will allow Tesla to build 500,000 cars annually. In comparison, the company built just 50,580 units last year. The same records indicate that its workforce will balloon from 6,210 to 9,315 once construction is completed, according to the East Bay Times.

Tesla co-founder and CEO Elon Musk recently announced that his company is about to launch a huge model offensive. The long-awaited, entry-level Model 3 is scheduled to enter production next year, and Musk’s second master plan calls for a lineup that encompasses “the major forms of terrestrial transport.” That includes a crossover based on the Model 3 and positioned below the Model X, a pickup truck, a bus, and even a semi truck.

All told, Musk hopes to build as many as a million cars annually by 2020, though it’s too early to tell where all of these vehicles will be built. However, it’s clear that expanding the Fremont factory is crucial if Tesla wants to reach its mass-market goals.

Ronan Glon
Ronan Glon is an American automotive and tech journalist based in southern France. As a long-time contributor to Digital…
Why Tesla’s promise to deliver 500,000 electric cars in 2020 isn’t unrealistic
tesla model 3 review 7668

Tesla released its 2019 financial results Wednesday, which means it's time for some ambitious goal setting. The Silicon Valley automaker said it expects to "comfortably exceed" 500,000 deliveries in 2020. That's a big step up from 2019's total, but given the progress Tesla has made over the past few years, as well as the production capacity it's working with, that goal should be achievable.

Tesla has been steadily ramping up production since the launch of the Model 3 in 2017. The automaker said it delivered 367,500 cars in 2019 -- 50 percent more than the previous year. To reach 500,000 units, Tesla needs to build 132,500 more cars in 2020 than it did in 2019 -- an increase of 36 percent. So Tesla doesn't need as big an increase for 2020 as it already achieved in 2019. Tesla also has significant untapped production capacity.
Factory upgrades
Tesla's main factory in Fremont, California, was able to build 500,000 cars a year back when it was a General Motors/Toyota joint venture making Toyota Corollas. Tesla's challenge since buying the factory has been unlocking that potential to build its own electric cars. In its 2019 financial results, Tesla said the Fremont factory now has a production capacity of 400,000 cars per year. Upgrades scheduled to finish in mid-2020 will increase capacity for the Model 3 and upcoming Model Y to 500,000 units per year, according to Tesla.

Read more
Tesla’s Model Y is on track to become its bestselling car
Tesla Model Y front

The Cybertruck received tremendous attention, as it will compete against America's most popular vehicles and it's shaped like nothing else on the road. But I think the  Tesla Model Y, now due out in early 2020, is Tesla's next superstar.

I'm confident it will dethrone the Model 3 and become the company's bestseller if Tesla manages to execute a smooth launch - and the company's Q4 earnings call provided plenty of reasons to be optimistic.
Everybody loves crossovers
Revealed in March 2019, the Model Y is a more spacious version of the Model 3, and a smaller alternative to the Model X, though without the unorthodox gull-wing doors.

Read more
Tesla strongly rejects claims of acceleration issue with its cars
Tesla Model 3

Tesla has strongly rejected claims that some of its cars are prone to sudden and unexpected acceleration.

The accusation was made known last week when it emerged that more than 100 Tesla owners had signed a petition citing the issue as the cause of 110 crashes and 52 injuries involving the Model S, the Model X, and the Model 3 vehicles.

Read more