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Tesla’s Fremont Factory produces it 2 millionth car
Tesla’s Fremont Factory in Northern California has produced its 2 millionth car: a Red Multi-Coat Model 3 Performance.
The Fremont Factory was once Tesla’s main manufacturing plant and could still be considered that today as it produces all four electric models and was the automaker’s initial production facility in the United States. Since Tesla moved its headquarters from nearby Palo Alto to Austin, Texas, late last year, the Fremont Factory has continued to be one of the automaker’s most crucial facilities and may even be the subject of a future expansion project.
However, despite Tesla’s newfound love for Texas, Fremont is still a very important part of Tesla’s manufacturing prowess. Yesterday, the factory built its 2 millionth vehicle, according to one employee at the plant who told Teslarati. A Red Multi-Coat Model 3 rolled off of Fremont’s production lines on Monday, becoming the two millionth car Tesla has built at the plant since assuming ownership of the facility in 2010.
Tesla employees at the plant also received a small card to commemorate their hard work as the Fremont Factory has reached this incredible accomplishment.
In March 2020, Tesla built its 1,000,000th vehicle, a red Model Y. This was not the one-millionth vehicle to roll out of Fremont but, in fact, Tesla’s millionth unit produced in its history. Of course, since 2020, Tesla has opened two new factories, increased manufacturing output at both Fremont and Shanghai with expansion projects, and increased its quarterly delivery rate from Q1 2020 by nearly three times. Q2 2022’s 254,695 deliveries are 2.88 times what Tesla delivered in Q1 2020 when it delivered its 1,000,000th vehicle as a company.
This accomplishment, however, is a real tip of the cap to Tesla and the entire team at Fremont. While the site lacks the necessary space for the world’s most valuable automaker, as Tesla has grown considerably over the past five years, it continues to manufacture units well above what is typical for its normal “production capacity.” Fremont has an annual production capacity of 600,000 vehicles, but production was running at as much as 20 percent over that figure in Q2 to make up for lost units in Shanghai due to a manufacturing shutdown.
More images of the commemorative Model 3 Performance were shared by Tesla East Bay Owners Club.
Fremont produced its 2 millionth vehicle this week! Congratulations to the @Tesla Fremont team! ?: C. Gutierrez ?? ?? ?? pic.twitter.com/JhDKFCuhcC
— Tesla East Bay Club |Fremont| ???? (@TeslaOwnersEBay) July 19, 2022
CEO Elon Musk undoubtedly knows the importance of the Fremont Factory based on comments made earlier this year. “We still operate our California factory, which is the largest auto plant in North America, at full capacity and are considering expanding it significantly,” Musk said in a Tweet earlier this year. “It has built 2/3 of all electric vehicles in North America, twice as much as all other carmakers combined.”
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Elon Musk shared an incredible detail about Tesla Cybercab’s potential efficiency, as the company has hinted in the past that it could be one of the most affordable vehicles to operate from a per-mile basis.
ARK Invest released a report recently that shed some light on the potential incremental cost per mile of various Robotaxis that will be available on the market in the coming years.
The Cybercab, which is detailed for the year 2030, has an exceptionally low cost of operation, which is something Tesla revealed when it unveiled the vehicle a year and a half ago at the “We, Robot” event in Los Angeles.
Musk said on numerous occasions that Tesla plans to hit the $0.20 cents per mile mark with the Cybercab, describing a “clear path” to achieving that figure and emphasizing it is the “full considered” cost, which would include energy, maintenance, cleaning, depreciation, and insurance.
Probably true
— Elon Musk (@elonmusk) January 22, 2026
ARK’s report showed that the Cybercab would be roughly half the cost of the Waymo 6th Gen Robotaxi in 2030, as that would come in at around $0.40 per mile all in. Cybercab, at scale, would be at $0.20.
Credit: ARK Invest
This would be a dramatic decrease in the cost of operation for Tesla, and the savings would then be passed on to customers who choose to utilize the ride-sharing service for their own transportation needs.
The U.S. average cost of new vehicle ownership is about $0.77 per mile, according to AAA. Meanwhile, Uber and Lyft rideshares often cost between $1 and $4 per mile, while Waymo can cost between $0.60 and $1 or more per mile, according to some estimates.
Tesla’s engineering has been the true driver of these cost efficiencies, and its focus on creating a vehicle that is as cost-effective to operate as possible is truly going to pay off as the vehicle begins to scale. Tesla wants to get the Cybercab to about 5.5-6 miles per kWh, which has been discussed with prototypes.
Additionally, fewer parts due to the umboxed manufacturing process, a lower initial cost, and eliminating the need to pay humans for their labor would also contribute to a cheaper operational cost overall. While aspirational, all of the ingredients for this to be a real goal are there.
It may take some time as Tesla needs to hammer the manufacturing processes, and Musk has said there will be growing pains early. This week, he said regarding the early production efforts:
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
Elon Musk
Elon Musk to attend 2026 World Economic Forum at Davos
The Tesla CEO was confirmed as a last-minute speaker for a session with BlackRock CEO Larry Fink.
Elon Musk is poised to attend the 2026 World Economic Forum in Davos. The Tesla CEO was confirmed as a last-minute speaker for a session with BlackRock CEO Larry Fink, signaling a thaw in Musk’s long-strained relationship with the event.
A late addition
Organizers of the World Economic Forum confirmed that Elon Musk was added shortly before the event to a Thursday afternoon session, where he was scheduled to speak with Fink, as noted in a Bloomberg News report. Musk’s upcoming appearance marks Musk’s first participation in the forum, which annually draws political leaders, business executives, and global media to Davos, Switzerland.
Musk’s attendance represents a departure from his past stance toward the event. He had been invited in prior years but declined to attend, including in 2024. His upcoming appearance followed remarks from his political ally, Donald Trump, who addressed the forum earlier in the week with a wide-ranging speech.
A previously strained relationship
Musk had frequently criticized the World Economic Forum in the past, describing it as elitist and questioning its influence. In earlier posts, he characterized the gathering as “boring” and accused it of functioning like an unelected global authority. Those remarks contributed to a long-running distance between Musk and WEF organizers.
The forum previously said Musk had not been invited since 2015, though that position has since shifted. Organizers indicated last year that Musk was welcome amid heightened interest in his political and business activities, including his involvement in the Trump administration’s Department of Government Efficiency (DOGE). Musk later stepped away from that role.
Despite his friction with the World Economic Forum, Musk has remained central to several global events, from SpaceX’s provision of satellite internet services in geopolitically sensitive regions through Starlink to the growing use of xAI’s Grok in U.S. government applications.
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Tesla states Giga Berlin workforce is stable, rejects media report
As per the electric vehicle maker, production and employment levels at the facility remain stable.
Tesla Germany has denied recent reports alleging that it has significantly reduced staffing at Gigafactory Berlin. As per the electric vehicle maker, production and employment levels at the facility remain stable.
Tesla denies Giga Berlin job cuts report
On Wednesday, German publication Handelsblatt reported that Tesla’s workforce in Gigafactory Berlin had been reduced by about 1,700 since 2024, a 14% drop. The publication cited internal documents as its source for its report.
In a statement to Reuters, Tesla Germany stated that there has been no significant reduction in permanent staff at its Gigafactory in Grünheide compared with 2024, and that there are no plans to curb production or cut jobs at the facility.
“Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans. Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans,” Tesla noted in an emailed statement.
Tesla Germany also noted that it’s “completely normal” for a facility like Giga Berlin to see fluctuations in its headcount.
A likely explanation
There might be a pretty good reason why Giga Berlin reduced its headcount in 2024. As highlighted by industry watcher Alex Voigt, in April of that year, Elon Musk reduced Tesla’s global workforce by more than 10% as part of an effort to lower costs and improve productivity. At the time, several notable executives departed the company, and the Supercharger team was culled.
As with Tesla’s other factories worldwide, Giga Berlin adjusted staffing during that period as well. This could suggest that a substantial number of the 1,700 employees reported by Handelsblatt were likely part of the workers who were let go by Elon Musk during Tesla’s last major workforce reduction.
In contrast to claims of contraction, Tesla has repeatedly signaled plans to expand production capacity in Germany. Giga Berlin factory manager André Thierig has stated on several occasions that the site is expected to increase output in 2026, reinforcing the idea that the facility’s long-term trajectory remains growth-oriented.
Elon Musk shares incredible detail about Tesla Cybercab efficiency
Elon Musk to attend 2026 World Economic Forum at Davos
