Tesla reaches annualized production rate of over 1 million EVs towards end of Q3 2021

Tesla reaches annualized production rate of over 1 million EVs towards end of Q3 2021

American electric vehicle manufacturer Tesla Motors has announced that it reached an annualized production rate of more than 1 million EVs in third quarter (Q3) of 2021, thanks to increased production of Model Y crossover utility vehicle (CUV) at the Shanghai factory.

Making the announcement about the company’s incredible milestone, Chief Financial Officer (CFO) Zach Kirkhorn said that the great progress was made possible by increased production volumes of the Model Y as well as the Model S.

Speaking on the topic, Kirkhorn said, “We were also able to achieve an annualized production run rate of over 1 million cars towards the end of the quarter. The increase in production rate has primarily been driven by further ramping of the Model Y at our Shanghai factory. Additionally, we have made great progress increasing production volumes of Model S.”

The ramped up production and deliveries of the Model X also played a crucial role in the helping the EV giant in hitting the production milestone of over 1 million EVs toward the end of the last quarter.

The company’s Q3 financial results are also very impressive. It marked Tesla’s ninth profitable quarter in a row, and the company declared a profit of $1.86 per share. Strong financial results would obviously have not been possible without strong deliveries. A record 241,300 EVs were delivered to customers during the July to September quarter. The figure represents growth 20 per cent quarter-over-quarter and 70 per cent year-over-year.

Kirkhorn noted that the transition of the company’s gigafactory in Shanghai as its main export hub was also a key factor contributing to the new annualized EV production milestone.

The top financial executive, however, also noted that the company continued to face big challenges due to worldwide shortage of some key components, such as semiconductor chips. Moreover, issues related to logistics also kept harassing the company.

In spite of all those issues, the CFO went on to say that the EV giant would be able to maintain its goal to grow at an average rate of 50 per cent per annum. It looks quite feasible for the next year as Giga Texas and Giga Berlin manufacturing plants are all set to start production. There is a great room for growth as these two mega factories has a capacity to produce as many as 10,000 EVs per week.