Tesla's Record Setting Month at Giga Shanghai

Tesla's Record Setting Month at Giga Shanghai

Tesla has reported a record high vehicle delivery number from Giga Shanghai, 76,605 vehicles produced, beating its all time high. Giga Shanghai is on pace for a 1 million per year run rate.

The China Passenger Car Association for sales and production from Giga Shanghai and there are some implications for Q3, 2022 with this data. Tesla produced 76,605 vehicles in August, 2022, which was made up of 19,884 Model 3 and 56,271 Model Y vehicles. This production number is higher than Tesla's previous all-time high of 70,928 vehicles produced in June, 2022.

Tesla's production for August, 2022 was still impacted by downtime for the Model 3 line for one week in August. That is about 5,800 Model 3 vehicles and means that Tesla would be over 80,000 vehicles for August. When annualized, you get 960,000 vehicles per year as a run rate.

For the first two months in Q3 of 2022, Tesla has already surpassed all of Q2, 2022, with 115,324 vehicles. As we move into September, it's most likely that we will see a 50% growth from the previous quarter for Giga Shanghai and that bodes well for Q3.

The Future of Giga Shanghai

CATL is building a new battery factory near Giga Shanghai and most likely, we will see another factory near Giga Shanghai to expand on the production Tesla is doing in China. Tesla only sells the Model 3 and Model Y in China right now, but this could change when the Cybertruck is released.

We should get a September sales figure of over 90,000 with the new Model 3 line now and a carry over of 10,000 vehicles which were produced but not recognized as sold in July.

There were lock downs in China and that is something that will need to have an eye kept on it. If China decides to lock down again, we'll see an impact like we did in May of 2022. Hopefully China doesn't do that.

Also, how quickly is Giga Shanghai expanding? Tesla has increased output by 10,000 vehicles per month. This is under appreciated. Tesla has increased its production by 120,000 vehicles per year in just a matter of 3 weeks with the shut down of the Model Y line.

Manufacturing is going to be Tesla's biggest strength, according to Elon Musk, and this is proving to be true. Tesla is on pace to reach 1 million vehicles per year as a run rate this year and they are far surpassing all other electric vehicle makers.

What do you think of Tesla's delivery numbers in China? Will Tesla reach a 1 million vehicles per year run rate?

For more information, see this video below from Tesla Daily:

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Tesla Daily, Screenshot