Tesla’s Q3 Update Letter revealed that the electric automaker is trending toward a possible manufacturing rate of 1 million vehicles a year after a 25% increase in Quarter-over-Quarter Model 3 and Model Y production at the Fremont facility was listed in the document. Between Fremont and Giga Shanghai, Tesla is currently operating with an annual production rate of 840,000 cars a year.
Tesla’s production of both the Model 3 sedan and Model Y crossover increased from 400,000 to 500,000 vehicles annually from Q2 to Q3. The two update letters, which detail the company’s progress during two separate three-month spans, indicate manufacturing efficiency and newly installed production lines.
The company wrote:
“We have recently increased capacity of Model 3 / Model Y to 500,000 units a year. In order to do this, we restarted our second paint shop, installed the largest diecasting machine in the world, and upgraded our Model Y general assembly line. Production should reach full capacity toward the end of this year or beginning of next year.”
Tesla (TSLA) crushes Q3 earnings with record profit, accelerates global growth
-->The increase in production is expected, as Tesla expanded its Model Y production line at the Fremont plant in mid-July. The company filed several applications on the City’s Public Access website, which detailed planned advancements of “General Assembly 4.5,” which is designated for Tesla’s newest vehicle’s manufacturing processes.
Additionally, the installation of two die-cast machines allowed for the Model Y’s single-piece casting design, which increased safety and manufacturing efficiency.
Tesla readies Model Y Giga Press for next-level production efficiency
But the global push toward electrification for Tesla goes far beyond Northern California. In China, the company’s Giga Shanghai facility has a production capacity of 250,000 Model 3 units a year. The company detailed its advancements at the plant in the Q3 Update Letter:
“Model 3 production capacity has increased to 250,000 units a year. We reduced the price of Model 3 to 249,900 RMB after incentives, making it the lowest-price premium mid-sized sedan in China. This was enabled both by lower-cost batteries and an increased level of local procurement. As a result of this shift in cost and starting price, we recently added a third production shift to our Model 3 factory. “
-->Currently, the Model 3 is the only Tesla vehicle produced at the facility. However, the company plans to begin building the Model Y at Giga Shanghai by the end of 2020.
With Fremont and Shanghai producing 590,000 and 250,000 vehicles annually, Tesla is on track to reach a manufacturing rate of 1 million vehicles per year. It is possible that with Giga Shanghai’s introduction of the Model Y, the two plants could reach the million vehicle threshold together. However, Tesla has plans for two other factories that will contribute to an ever-growing annual production rate.
In Germany, Giga Berlin is quickly taking shape, and Tesla plans to begin production at this facility in 2021. The company also detailed the progress at its first European plant by saying:
“Construction of the Gigafactory in Berlin continues to progress rapidly. Buildings are under construction, and equipment move-in will start over the coming weeks. At the same time, the Giga Berlin team continues to grow. Production is expected to start in 2021.”
Finally, Tesla is also working on building another U.S.-based plant in Austin, Texas, which will introduce the Cybertruck and Semi, and also produce the Model 3 and Model Y for East Coast customers.
-->Tesla reported its fifth-consecutive profitable quarter, announcing revenue of $8.771 billion for the quarter, and non-GAAP earnings per share of $0.76. Additionally, Tesla posted $809M GAAP operating income, resulting in a 9.2% operating margin. The company also ended the third quarter with $331M GAAP net income and $874M non-GAAP net income (ex-SBC).
News
Tesla Europe rolls out FSD ride-alongs in the Netherlands’ holiday campaign
The festive event series comes amid Tesla’s ongoing push for regulatory approval of FSD across Europe.
Tesla Europe has announced that its “Future Holidays” campaign will feature Full Self-Driving (Supervised) ride-along experiences in the Netherlands.
The festive event series comes amid Tesla’s ongoing push for regulatory approval of FSD across Europe.
The Holiday program was announced by Tesla Europe & Middle East in a post on X. “Come get in the spirit with us. Featuring Caraoke, FSD Supervised ride-along experiences, holiday light shows with our S3XY lineup & more,” the company wrote in its post on X.
Per the program’s official website, fun activities will include Caraoke sessions and light shows with the S3XY vehicle lineup. It appears that Optimus will also be making an appearance at the events. Tesla even noted that the humanoid robot will be in “full party spirit,” so things might indeed be quite fun.
“This season, we’re introducing you to the fun of the future. Register for our holiday events to meet our robots, see if you can spot the Bot to win prizes, and check out our selection of exclusive merchandise and limited-edition gifts. Discover Tesla activities near you and discover what makes the future so festive,” Tesla wrote on its official website.
-->This announcement aligns with Tesla’s accelerating FSD efforts in Europe, where supervised ride-alongs could help demonstrate the tech to regulators and customers. The Netherlands, with its urban traffic and progressive EV policies, could serve as an ideal and valuable testing ground for FSD.
Tesla is currently hard at work pushing for the rollout of FSD to several European countries. Tesla has received approval to operate 19 FSD test vehicles on Spain’s roads, though this number could increase as the program develops. As per the Dirección General de Tráfico (DGT), Tesla would be able to operate its FSD fleet on any national route across Spain. Recent job openings also hint at Tesla starting FSD tests in Austria. Apart from this, the company is also holding FSD demonstrations in Germany, France, and Italy.
News
Tesla sees sharp November rebound in China as Model Y demand surges
New data from the China Passenger Car Association (CPCA) shows a 9.95% year-on-year increase and a 40.98% jump month-over-month.
Tesla’s sales momentum in China strengthened in November, with wholesale volumes rising to 86,700 units, reversing a slowdown seen in October.
New data from the China Passenger Car Association (CPCA) shows a 9.95% year-on-year increase and a 40.98% jump month-over-month. This was partly driven by tightened delivery windows, targeted marketing, and buyers moving to secure vehicles before changes to national purchase tax incentives take effect.
Tesla’s November rebound coincided with a noticeable spike in Model Y interest across China. Delivery wait times extended multiple times over the month, jumping from an initial 2–5 weeks to estimated handovers in January and February 2026 for most five-seat variants. Only the six-seat Model Y L kept its 4–8 week estimated delivery timeframe.
The company amplified these delivery updates across its Chinese social media channels, urging buyers to lock in orders early to secure 2025 delivery slots and preserve eligibility for current purchase tax incentives, as noted in a CNEV Post report. Tesla also highlighted that new inventory-built Model Y units were available for customers seeking guaranteed handovers before December 31.
This combination of urgency marketing and genuine supply-demand pressure seemed to have helped boost November’s volumes, stabilizing what had been a year marked by several months of year-over-year declines.
-->For the January–November period, Tesla China recorded 754,561 wholesale units, an 8.30% decline compared to the same period last year. The company’s Shanghai Gigafactory continues to operate as both a domestic production base and a major global export hub, building the Model 3 and Model Y for markets across Asia, Europe, and the Middle East, among other territories.
Tesla bear Michael Burry got blunt with his beliefs over the company’s valuation, which he called “ridiculously overvalued” in a newsletter to subscribers this past weekend.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry, who was the inspiration for the movie The Big Short, and was portrayed by Christian Bale.
Burry went on to say, “As an aside, the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up.”
Tesla bear Michael Burry ditches bet against $TSLA, says ‘media inflated’ the situation
For a long time, Burry has been skeptical of Tesla, its stock, and its CEO, Elon Musk, even placing a $530 million bet against shares several years ago. Eventually, Burry’s short position extended to other supporters of the company, including ARK Invest.
Tesla has long drawn skepticism from investors and more traditional analysts, who believe its valuation is overblown. However, the company is not traded as a traditional stock, something that other Wall Street firms have recognized.
While many believe the company has some serious pull as an automaker, an identity that helped it reach the valuation it has, Tesla has more than transformed into a robotics, AI, and self-driving play, pulling itself into the realm of some of the most recognizable stocks in tech.
Burry’s Scion Asset Management has put its money where its mouth is against Tesla stock on several occasions, but the firm has not yielded positive results, as shares have increased in value since 2020 by over 115 percent. The firm closed in May.
In 2020, it launched its short position, but by October 2021, it had ditched that position.
Tesla has had a tumultuous year on Wall Street, dipping significantly to around the $220 mark at one point. However, it rebounded significantly in September, climbing back up to the $400 region, as it currently trades at around $430.
It closed at $430.14 on Monday.
Tesla Europe rolls out FSD ride-alongs in the Netherlands’ holiday campaign
Tesla sees sharp November rebound in China as Model Y demand surges
