Tesla Increases Production Rate of Its Electric Vehicles

With $3.3 billion in profits in the third quarter and a growing production rate, Tesla continues to aim for 50% annual growth.

Best-selling in Germany in September with nearly 10,000 units, number one in Switzerland and Norway in 2022, the Tesla Model Y is establishing its presence in Europe. The electric SUV has helped propel the company to new heights, according to recent figures.

11.2 billion dollars in profits in one year!

The American manufacturer released its third-quarter financial results for 2022. Revenue hit a record of $21.45 billion (€21.8 billion), while profits approached first-quarter levels at $3.29 billion (€3.34 billion). Tesla attributes this “underperformance” to high material costs and a strong dollar. Over the year, profits have increased to $11.19 billion, a record in the automotive industry.

Above all, Tesla achieves this feat with only one million cars sold, compared to 8 to 10 million for leaders Toyota and Volkswagen. Profitability remains strong at 17.2%, enough to make Mercedes-Benz or BMW envious, struggling to surpass 10%. However, Porsche still leads with a 24.6% margin in 2021.

Towards 1.4 million cars in 2022?

Tesla has confirmed to have produced 365,923 electric cars from July to September 2022. A record, following three other high-paced quarters. This results in an annual rate of 1.23 million vehicles over the last four quarters. And its promise to grow by 50% annually seems feasible, about 1.4 million electric cars in 2022 (compared to 935,960 in 2021). But during the earnings announcement tonight, the brand assured that the sites will further ramp up production. Could this reach the 470,000 vehicles remaining?

In the United States, the Fremont factory will “increase” its production rate, the Texas Gigafactory is accelerating on the Model Y, and the Nevada site will deliver the first Tesla Semi trucks in December. In Europe, the Berlin factory has reached over 2000 units per week. Finally, the Shanghai Gigafactory (China) has resumed its growth after the summer lockdown, with an annual capacity of 750,000 electric cars. Overall, Tesla would have a capacity of 1.9 million units.

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