Tesla announced that its Gigafactory in Texas is now building 3,000 Model Y units per week, thanks to a significant increase in production.
Tesla has revealed that its Gigafactory in Texas is now building 3,000 Model Y units per week, thanks to a massive increase in production. The Model Y played a key role in Tesla’s dominance of the electric car market. While the EV brand has other vehicles in its range, the Y model is the most popular. CEO Elon Musk has claimed that the Model Y is on track to become the best-selling car in the world, a title currently held by the Toyota Corolla. In July 2022, the Model Y recorded a 227% increase in sales in Europe compared to the previous year, becoming the best-selling new car in the region.
Tesla announced the Model Y production news on Twitter, saying “Giga Texas hits 3,000 Model Y builds/week. Congratulations, Team Tesla! In June, Musk confirmed that Tesla would ramp up Model Y production to meet delivery deadlines. Tesla’s electric vehicles are very popular, and those making reservations often have to endure long waits for delivery.In August, Tesla offered a way to shorten the wait for a Model Y, but only if the buyer was willing to sacrifice range by choosing 20-inch induction wheels.
Why is Tesla increasing production?
2023 is the year Tesla regains its US federal tax credit status following the passage of the Inflation Reduction Act. Tesla, along with automakers Toyota and General Motors, were not eligible for the tax credit as they had sold more than 200,000 electric vehicles. Under the new law, the market value will be phased out in 2023, allowing buyers to get a $7,500 credit on Model Y and Model 3 purchases.
To boost sales, General Motors through its subsidiaries unveiled several electric models ranging from the Chevrolet Silverado EV pickup to the GMC Sierra EV Denali. Although Tesla is still seeing strong demand for its four available models, it is also set to release the long-awaited Cybertruck in 2024. After a series of delays, the Cybertruck is said to have recently entered the tooling phase and will go into production next week year.
It’s worth noting that while Tesla’s increased production is good news for the automaker’s fortunes, a report from S&P Mobility found that the all-electric vehicle maker is losing market share to non-luxury electric vehicles. However, the report also mentioned that Tesla would continue to sell more electric vehicles even if it lost some of the market, and the increase in Model Y production is an indication of this.