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Tesla’s European Gigafactory will produce 500k vehicles per year: report

Tesla factory in Tilburg, Netherlands. (Credit: Tesla)

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Tesla’s Gigafactory 4 in Berlin, Germany is expected to build around 500,000 Model 3 and Model Y vehicles per year, according to a report from Bild, a German newspaper.

In November, Elon Musk traveled to Germany to attend the Golden Steering Wheel awards, where he announced that Tesla’s European Gigafactory will be built in Germany. A Tesla Engineering and Design Center will also be built in the Berlin area, according to the CEO.

Tesla is planning to invest $4.41 billion into the plant that will begin production in 2020, according to German newspaper Frankfurter Allgemeine Zeitung. GF4 is expected to give a boost to the German economy, creating about 10,000 new jobs. That being said, Gigafactory 4’s expected production rate of half a million vehicles a year matches the expected potential of the Fremont factory and Gigafactory 3 in Nevada, both of which have been quoted with a similar production capacity in the past.

Tesla is yet to issue a comment on these recent reports from Germany. That being said, the 500k target makes sense if one were to consider the fact that Gigafactory 4 is starting its production with the Model Y crossover, a vehicle that is expected to outsell the Model S, X, and Model 3 combined. Considering the demand for crossovers in the European region, a wave of Model Y when GF4 starts operation would benefit Tesla.

The decision to put Tesla’s next factory in Berlin was based on a multitude of things. There was the idea of GF4 being placed somewhere in the UK, but Musk and Tesla had observed Brexit as a possible hurdle and the uncertainty of the situation “made it too risky to put a Gigafactory in the UK,” the CEO said during an interview with Auto Express.

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However, Germany’s reputation for building some of the best and most dependable cars in the world also played into the decision. “Some of the best cars in the world are made in Germany. Everyone knows that German engineering is outstanding, for sure, and that’s part of the reason why we are locating our Gigafactory Europe in Germany,” Musk said.

Initial production of the Model 3 and Model Y is expected to begin in 2021 with the help of 3,000 employees, according to Bild. The Model 3 has gained the reputation of one of the most popular cars in the world and has won numerous “Car of the Year” awards from publications like the UK’s Auto Express and Parker’s Magazine. The Model Y crossover is expected to be delivered to buyers in Summer 2020 and has been spotted on public roads on numerous occasions recently.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla rolls out most aggressive Model Y lease deal in the US yet

With the promotion in place, customers would be able to take home a Model Y at a very low cost.

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(Credit: Tesla)

Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.

Zero downpayment leases

The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment. 

Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.

Premium freebies included

Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.

A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing. 

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Tesla is looking to phase out China-made parts at US factories: report

Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.

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(Source: Tesla)

Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.

The update was initially reported by The Wall Street Journal.

Accelerating North American sourcing

As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.

The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.

Industry-wide reassessments

Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report. 

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General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration. 

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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

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