Key points
- Tesla’s Fremont factory is slowing down production in Q3 2023.
- This is likely due to factory upgrades for the refreshed Model 3, as well as preparations for the Cybertruck.
- There is some speculation that the Model 3 could be manufactured at Gigafactory Shanghai instead, but this has not been confirmed.
- Drone footage of the Fremont factory shows that operations have slowed down.
- It is possible that Tesla is retooling the Fremont factory for the Cybertruck, which is expected to start low-volume production at the end of this year.
- Tesla has not confirmed any of the aforementioned speculations.
- The Model 3 is one of Tesla’s most popular vehicles, and it is possible that the slowdown in production is due to high demand.
- However, it is also possible that Tesla is simply making preparations for the Cybertruck and other upcoming vehicles.
- We will have to wait and see what Tesla’s plans are for the Fremont factory in the coming months.
Here are some additional details
- The refreshed Model 3 is expected to have a number of changes, including a new interior, exterior, and battery pack.
- The Cybertruck is a new electric pickup truck that Tesla has been developing for several years.
- Gigafactory Shanghai is Tesla’s largest factory in the world.
- Tesla has not released any official statements about the slowdown in production at the Fremont factory.
Details
As of the first half of 2023, Tesla has reported impressive production and delivery figures. However, there are indications that manufacturing might slow down in the third quarter due to factory upgrades. CEO Elon Musk mentioned during the Q2 earnings call that the Fremont factory in California, one of the facilities that manufacture the Model 3, will experience summer shutdowns to implement upgrades.
One possible reason for the slowdown is the introduction of the refreshed Model 3, informally known as Project Highland. There have been spy shots of prototypes of the updated Model 3 seen around California.
Model 3
Previously it was rumoured the updated Model 3 would be manufactured at Gigafactory Shanghai, but a Chinese digital newspaper reported that Tesla China denied these claims. As a result, the focus seems to be on the Fremont factory for the production of the new Model 3.
Recent drone footage of the Fremont facility indicates that operations have slowed down, with logistics lots appearing deserted, entrances to those lots being shut, and a lack of hauler activity. Minimal activity has also been observed in the casting and manufacturing sections.
Tesla
Furthermore, Tesla is currently working on the pre-production Cybertruck, with low-volume production expected to start towards the end of 2023 and scaling up in 2024. This may also require retooling of the Fremont factory to accommodate the production of the electric truck.
In May 2023, reports surfaced suggesting that Tesla would be demolishing multiple equipment, tools, and utilities at the Fremont factory. However, the company has not officially confirmed any of these speculations.
The Model 3 and Model Y have been selling well in the US, with combined sales breaking Tesla’s own records in the first half of 2023. Despite the slowdown rumours, Tesla maintains a target of delivering 1.8 million vehicles this year.
Conclusion
Here are a number of reasons why Tesla’s Fremont factory is slowing down production in Q3 2023. It is likely due to factory upgrades for the refreshed Model 3, as well as preparations for the Cybertruck. There is also some speculation that the Model 3 could be manufactured at Gigafactory Shanghai instead. However, Tesla has not confirmed any of these speculations.
We will have to wait and see what Tesla’s plans are for the Fremont factory in the coming months. However, it is clear Tesla is making some significant changes to its production schedule in order to prepare for the future.
