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Tesla aims to produce 1.5 million cars in 2022

(Credit: Tesla)

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Tesla aims to produce 1.5 million cars in 2022 with the help of its Gigafactories in Shanghai, Berlin, and Texas. The Fremont Factory, Tesla’s original headquarters in California, will contribute to production numbers, too — as always. 

During his opening remarks at the Q1 2022 earnings call, Tesla CFO Zachary Kirkhorn noted that the company still believes it will achieve a 50% or more growth rate by the of the year. Elon Musk supported Kirkhorn’s estimates. 

“So, as Zach said, we remain confident of a 50% growth in vehicle production in 2022 versus ‘21. I think, we actually have a reasonable shot at a 60% increase over last year. So, let’s see,” Musk stated. 

Tesla started production at Giga Texas and Giga Berlin in the first quarter. The EV manufacturer highlighted that both Austin and Berlin factories were still just starting their ramps, and it may affect Tesla’s gross margins in Q2. 

“Obviously, we ramped production, as you will know, with Giga Berlin and Giga Texas in the past few months. So, with two fantastic factories with great teams, and they are ramping rapidly.

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“Now, with new factories, the initial ramp always looks small, but it grows exponentially. So, I have very high confidence in the teams of both factories. And we expect to ramp those initially slowly, but like I said, growing exponentially with them achieving high volume by the end of this year,” Musk noted in his opening remarks. 

The Tesla CEO also shared that it usually takes 9 to 12 months to reach high-quality volume production in a new factory from the start of production. So, Berlin and Texas’ contributions to Tesla’s production numbers will probably be more evident towards Q3 or Q4. 

Gigafactory Shanghai has substantially contributed to Tesla’s production numbers since it started building vehicles in 2019. The China-based factory shut down at the tail end of the last quarter due to a COVID outbreak. However, Kirkhorn said that Giga Shanghai is up and running again at a limited level. Tesla China is working hard to get back to full production swiftly. 

“Well, we did lose a lot of important days of production. And because there are sort of upstream supplier challenges where a lot of suppliers also have lost many days of production. But Giga Shanghai is coming back with a vengeance,” Musk shared. 

He forecasted that Giga Shanghai would likely produce the same number of vehicles in the second quarter as in Q1 2022. However, he added that Tesla China’s production numbers could also be slightly lower or higher than Q1, depending on any unforeseen challenges. Musk believes that Tesla China will pull through in Q2. He is even more hopeful for Q3 and Q4 — barring any other issues that might pop up.

“But then, Q3 and Q4 will be substantially higher. So, it seems likely that we’ll be able to produce over 1.5 million cars this year is my — that’s my best guess,” he stated.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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This signature Tesla feature is facing a ban in one of its biggest markets

The report indicates that Chinese government agencies have concerns “about failure rates and safety issues with the flush design.”

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A signature Tesla feature is under fire in one of the company’s largest markets, as regulators in one EV hot spot are mulling the potential ban of a design the automaker implemented on some of its vehicles.

Tesla pioneered the pop-out door handle on its Model S back in 2012, and CEO Elon Musk felt the self-presenting design was a great way to feel like “you’re part of the future.”

It is something that is still present on current Model S designs, while other vehicles in the Tesla lineup have a variety of handle aesthetics.

How to repair your Tesla Model S Door handle (DIY Kit)

According to Chinese media outlet Mingjing Pro, the company, along with others using similar technology, is facing scrutiny on the design as regulators consider a ban on the mechanism. These restrictions would impact other companies that have utilized pop-out handles on their own designs; Tesla would not be the only company forced to make changes.

The report indicates that Chinese government agencies have concerns “about failure rates and safety issues with the flush design.”

However, EVs are designed to be as aerodynamically efficient as possible, which is the main reason for this design. It is also the reason that many EVs utilize wheel covers, and sleek and flowing shapes.

However, the Chinese government is not convinced, as they stated the aerodynamic improvements are “minimal,” and safety issues are “significantly elevated,” according to The Independent.

The issue also seems to be focused on how effective the handle design is. According to data, one EV manufacturer, which was not specified in the report, has 12 percent of its total repairs are door handle failure fixes.

There are also concerns about the handles short-circuiting, leaving passengers trapped within cars. Tesla has implemented emergency latch releases in its vehicles that would prevent passengers from getting stuck in their cars in cases of electric malfunctions or failures.

However, evidence from the Chinese Insurance Automotive Technology Research Institute (C-IASI) suggests that 33 percent of door handles using this design fail to function after a side impact.

Obviously, Tesla and other automakers could introduce an alternative design to those vehicles that are affected by the potential restrictions China intends to impose. The regulation would take effect in July 2027.

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Tesla is bailing out Canadian automakers once again: here’s how

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(Credit: Tesla)

Tesla is bailing out Canadian automakers once again, as some companies in the country are consistently failing to reach mandated minimum sales targets for emission-free vehicles.

Many countries and regions across the world have enacted mandates that require car companies to sell a certain percentage of electric powertrains each year in an effort to make sustainable transportation more popular.

These mandates are specifically to help reduce the environmental impacts of gas-powered cars. In Canada, 20 percent of new car sales in the 2026 model year must be of an emissions-free powertrain. This number will eventually increase to 100 percent of sales by 2030, or else automakers will pay a substantial fine — $20,000 per vehicle.

There is a way companies can avoid fines, and it involves purchasing credits from companies that have a surplus of emissions-free sales.

Tesla is the only company with this surplus, so it will be bailing out a significant number of other automakers that have fallen short of reaching their emissions targets.

Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association, said (via Yahoo):

“The only manufacturer that would have a surplus of credits is Tesla, because all they do is sell electric vehicles. A manufacturer has to enter into an agreement with them to purchase credits to help them meet the mandate.”

Tesla has made just over $1 billion this year alone in automotive regulatory credits, which is revenue acquired from selling these to lagging car companies. Kingstone believes Tesla could be looking at roughly $3 billion in credit purchases to comply with the global regulations.

Tesla still poised to earn $3B in ZEV credits this year: Piper Sandler

Automakers operating in Canada are not putting in a lack of effort, but their slow pace in gaining traction in the EV space is a more relevant issue. Execution is where these companies are falling short, and Tesla is a beneficiary of their slow progress.

Kingston doesn’t believe the mandates are necessarily constructive:

“We’ve seen over $40 billion in new investment into Canada since 2020 and all signs were pointing to the automotive industry thriving. Now the federal government has regulations that specifically punishes companies that have a footprint here, requiring them to purchase credits from a company that has a minimal (Canadian) footprint and an almost nonexistent employee base.”

Kingston raises a valid point, but it is hard to see how Tesla is to blame for the issue of other car companies struggling to bring attractive, high-tech, and effective electric powertrains to market.

Tesla has continued to establish itself as the most technologically advanced company in terms of EVs and its tech, as it still offers the best product and has also established the most widespread charging infrastructure globally.

This is not to say other companies do not have good products. In my personal experience, Teslas are just more user-friendly, intuitive, and convenient.

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Tesla ditches key Cybertruck charging feature for very obvious reason

“Wireless charging something as far off the ground as the [Cybertruck] is silly.”

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Credit: Tesla

Tesla is officially ditching the development of a key Cybertruck charging feature, and the reason is very obvious, all things considered.

The Cybertruck is among the most unique vehicles available on the market, and, like all Tesla vehicles, it has continued to improve through Over-the-Air software updates that enhance performance, safety, and other technological features.

However, the development of some features, while great on paper, turns out to be more difficult than expected. One of these features is the presence of wireless charging on the all-electric pickup, a capability Tesla has been working to integrate across its entire vehicle lineup.

Tesla wireless charging patent revealed ahead of Robotaxi unveiling event

Most people who have used wireless charging for their phones or other devices have realized it is not as effective as plugging into a cord or cable. This is even relevant with Tesla vehicles, as the introduction of wireless charging for smartphones within the vehicles has been a nice feature, but not as impactful as many would hope.

It’s not necessarily Tesla’s fault, either. Wireless charging is a complex technology because much of the energy intended to be transferred to the phone is lost through heat.

Instead of the energy being stored in the battery, it is lost on the outside of the phone, which is why it becomes warm to the touch after sitting on a charging mat.

This is something that Tesla is likely trying to resolve with its vehicles before rolling out inductive charging to owners. The company has confirmed that it is working on a wireless charging solution, but it has yet to be released.

However, this feature will not be coming to the Cybertruck. Wes Morrill, the Cybertruck’s lead engineer, said that the vehicle’s height makes wireless charging “silly,” according to Not a Tesla App:

“Wireless charging something as far off the ground as the CT is silly.”

This is something that could impact future vehicle designs; the Cybertruck might not be the only higher-ground clearance vehicle Tesla plans to offer to customers. Therefore, being transparent about a design’s capabilities, or even developing technology that would enable this, would be useful to potential buyers.

At this point, wireless charging seems like it would be more advantageous for home charging than anything.

Due to its current inefficiency, it would likely be a great way to enable seamless charging in a garage or residential parking space, rather than something like a public charger where people are looking to plug and go in as little time as possible.

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