Tesla (TSLA, Financial) has reached another significant production milestone with its Fremont factory achieving the production of 1 million Model Y units. This announcement comes shortly after Tesla's global vehicle production surpassed 7 million. The milestone is notable given that the Fremont factory was not originally designed for Tesla's manufacturing needs.
The company highlighted this achievement on social media, reflecting on the growth of the Fremont facility. Since producing its first Model 3 on the GA4 line in June 2018, the factory has developed into an impressive automotive hub.
Fremont was Tesla's first production plant and, according to the company's Q3 financial report, currently has an annual capacity to produce over 550,000 Model 3 and Model Y vehicles, along with 100,000 Model S and Model X vehicles. Although its production capacity is lower than Tesla's Shanghai Gigafactory, which produces over 950,000 Model 3 and Model Y cars annually, Fremont remains a key player in Tesla’s production strategy.
The Fremont factory initially operated as a traditional auto manufacturing facility, unlike the Texas Gigafactory, which was specifically built to produce the Model Y and Cybertruck. The Fremont facility's transition to large-scale production required innovative solutions, including the use of spring structures for additional assembly lines.
Currently, the Model Y is Tesla's bestselling vehicle and leads the U.S. electric vehicle market. It has also shown strong market influence in Europe and China. Last year, by sales volume, the Model Y became the world's top-selling car, a first for any all-electric vehicle.
