Tesla Could Double Size Of Fremont Factory

By

Automotive Editor

Based in India, Surya has been writing about cars for over two years now. His work has been published in popular online publications including BMWBlog and GTspirit. He is particularly interested in the business side of the automotive industry.


, Automotive Editor - August 21, 2017

As it prepares to ramp up production for the new Model 3 sedan, Tesla is significantly expanding its assembly plant in Fremont, California.

The City Council of Fremont approved the plans for the extension in December 2016. Tesla has identified 12 growth zones and the highlight of the expansion will be a new automated storage facility. According to reports, construction at the facility is already underway.

Tesla hasn't provided much detail about the work, but it has confirmed that the development will nearly double the plant’s area from the current 5.3 million square-feet to about 10 million square-feet. For reference, BMW’s plant in Spartanburg, South Carolina, which has a production capacity of 450,000 units, is limited to 7 million square-feet.

Tesla aims to produce 500,000 vehicles next year – 400,000 Model 3s and 100,000 of the more expensive Model S and Model X. That's up from the 83,000 Fremont made in 2016 and the 100,000 it is expected to make this year. CEO Elon Musk has previously said that his workers will endure a “production hell” to meet the ever-growing demand of the Model 3, with 1,800 reservations being added every day.

No automotive company in recent history has expanded its production by this scale in such a short time period, but for Tesla, the Model 3 could be the key in turning its loss-making venture into a profitable one.

, Automotive Editor

Based in India, Surya has been writing about cars for over two years now. His work has been published in popular online publications including BMWBlog and GTspirit. He is particularly interested in the business side of the automotive industry.