Going into production last March, the Tesla Gigafactory in Berlin announces that it has assembled 1,000 Model Ys in seven days, amid a global supply chain crisis that affects every automaker. However, the symbolic bar of 1,000 weekly units should have been crossed by the end of April 2022.
However, according to Electrek, the Gigafactory in Berlin was struggling to produce more than 350 vehicles at the time. A problem that apparently came from the paint shop, the main bottleneck and… which may not be the last given the current context of shortage of components.
1k Model Y built at Giga Berlin this week. Thank you Tesla team! pic.twitter.com/jCT1qkzvpS
—Tesla (@Tesla) June 18, 2022
The German Gigafactory should do much better than the one in Texas, whose production is slowed down due to the new 4680 cells destined to power the Model Y. In fact, the German-made Model Y is still equipped with 2170 cells for its batteries. Once Berlin is up and running, the Model Y will integrate the new 4680 cells.
If Berlin maintains this limit of 1,000 cars/week, around 50,000 vehicles will be added to the American manufacturer’s annual production. This Model Y surplus would come to relieve the Shanghai Gigafactory, which could from then on concentrate the market in and around China.
Let us remember that in December 2019, the German daily Photograph wrote that the Berlin Gigafactory should “initially produce 150,000 electric vehicles a year before reaching 500,000 a year, including the Model 3 and the future Model Y, the SUV based on the Model 3 platform“. The factory is also expected to manufacture electric motors and batteries.
Overheated price across the range
While fuel prices are exploding in France and around the world, Tesla’s electric vehicle prices are following the trend.
In the US, the entire range has seen its prices skyrocket, with an increase of up to $6000 for certain cars such as the Model X Dual Motor Long Range or the Model S Dual Motor Long Range (+5000$).
The Model 3 Grande Autonomie and Model Y Grande Autonomie et Performance are the vehicles with the “most modest” increase, on the order of $2,500 to $3,000.
Note that the Model S Plaid remains at the same price of $135,990 as the Model X Plaid at $138,990.
France is not spared
France is also affected by this umpteenth increase in the price of Tesla vehicles. Thus, the main cars in question are the Model 3 (+2,500€) and the Model Y, the SUV based on the latter (from €2,000 to €3,000).
Today, for the Model 3 Propulsion, the entry level is €53,490 compared to €50,990 not so long ago. The Model 3 Grande Autonomie is displayed at €62,490 against €59,990 previously. As for the Model 3 Performance, its new price is €66,490 against €64,990.
The Tesla Model 3 thus suffered an increase of almost €9,700 since the beginning of the year. As a result, the €6,000 ecological bonus – reduced to €5,000 on July 1st – is just €2,000.
The Model Y Grande Autonomie is shown at €64,990 against €62,990 previously, while the Performance version is priced at €69,990 a barrel, against €66,990.
As our colleagues from car magazinesoon it will be more advantageous to buy a BMW i4 eDrive40 340 hp, marketed from €59,950.
So, of course, Tesla isn’t the only one raising its prices. Renault did it for Zoé (+€900 Equilibre finish) as well as Dacia for Spring (+€500 Essential finish). Note that both Zoé and Spring retain the €6,000 bonus (27% of the purchase price).
Like other manufacturers, Tesla is bearing the brunt of the global crisis, which is causing raw material prices and logistics costs to rise. Let’s not forget that Teslas come by boat from the United States and China. The Gigafactory in Berlin is expected to bring a breath of fresh air to this side.
In addition, Tesla should anticipate potential cost increases that could arise when certain models ordered today in the configurator are not delivered for six or even 12 months.
Another hypothesis, is Tesla looking to improve its gross margins, which continued to increase in 2021 (+29%)? Indeed, while raw materials continue to rise and the entry into service of the Gigafactory in Berlin and Austin (Texas) should weigh on the balance sheet, the easiest solution would be to raise prices. A little game that could deter some buyers, who might struggle to keep up with that price increase.