Tesla Is Opening Factories Left and Right

Tesla has been opening factories across the globe with the most recent one being in Germany, the first Tesla factory in Europe.
Written by Serena Aburahma
Reviewed by Kathleen Flear
Tesla
CEO Elon Musk opened a new vehicle manufacturing plant this year in Gruenheide, Germany, the first in Europe. 
His company also introduced an Austin, Texas plant, Giga Texas, which will build Teslas and the batteries for Teslas, perhaps the much-hoped-for million-mile battery. The automaker needs the new factories to  meet increasing demand as it nears a half million cars on the road
Jerry
has all the info you need on Tesla’s expansion.

New Tesla factories growth phase

The German Giga factory produces the Model Y vehicle,
Bloomberg
reports. 
According to the
Tesla
website, Musk's auto company also maintains Tesla factories in Fremont, California; Buffalo, New York; Sparks, Nevada; and Shanghai, but neither works on the Cybertruck, which depending on the sources, Tesla either delayed or canceled altogether.
The rapid expansion of his manufacturing operation indicates an active new growth phase for the company. That's all part of the CEO's goal to maintain the leadership position in the electric vehicle market. 
Tesla weathered many problems in the last two years, including supply chain problems, semiconductor issues, congested recharge ports, and staffing shortages brought on by the COVID-19 pandemic.
With those problems alleviated, Tesla returns to its prior plan of continuous improvement. Recent innovations incited the U.S. government to demand a recall of some of the automaker's vehicles, but Musk will now have the space to work on fixing these issues while maintaining the company's manufacturing quotas. 
Prices rose on Tesla models
though, perhaps to pay for the factories.
MORE: Tesla Could Be Getting a Brand New Battery Plant in the U.S.
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The machine that builds the machine

Musk considers Tesla factories products, as well, calling them Gigafactories, according to
TechHQ
, which reports that Giga Texas replaced the California factory as company headquarters. 
Musk refers to a factory as "the machine that builds the machine," according to
Harvard Business School Digital
(HBSD). Musk hopes the new Tesla factories will let him catch up with the production that fell behind with the Model 3.
According to HBSD, increasing automation at the Tesla factories could speed production, a lesson Musk learned from the 2017 shortfall in production. 
In that year, the company received orders for 1,500 Model 3s, but could only deliver 266. The shortfall resulted from attempting to build them by hand rather than using automation.
Increasing the number of factories can also speed up production. The new Texas battery factory could spur further battery development. 
Tesla drivers hold out hope for the coveted million miles battery for its long-lasting capabilities, while manufacturers want it because it will lower the carbon footprint of a vehicle remarkably.
MORE: Ford Admits Defeat, Announces Closure of Indian Manufacturing Plants

Is Tesla’s growth back on track?

Because the COVID-19 pandemic followed the 2017 shortfall, Tesla's growth had lagged for a few years. 
However, the opening of these two new manufacturing plants signals the renewed growth of the company. These factories leverage the automation of PERBIX, an automation firm that Musk purchased in the wake of the 2017 Model 3 shortfall.
According to
NASDAQ
, Musk says he kept the Cybertruck project alive and continues to work on an ultra-affordable self-driving electric vehicle with a sticker price of $25,000. Those projects will likely lead to more new factories, but when they'll go into production isn't yet certain.
You probably won't see a repeat of 2017's production shortfall now that Musk has six Gigafactories across three continents. Automation combined with spacing out production across continents should help Tesla avoid future supply issues.

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