Elon Musk's Giga Texas Worries May Ease As Tesla Factory Said To Significantly Ramp Up Output

Tesla Inc (NASDAQ: TSLA) has been able to ramp up production at Giga Texas to thousands of units per week, Electrek reported on Wednesday.

What Happened: Austin, Texas-based Tesla is making 5,000 vehicles, and is capable of producing at least 2,000 Model Ys per week at the plant, according to the report, citing two separate sources.

The Elon Musk-led company currently makes the Model 3 and Model Y cars and has added production of the Model Y Long Range on top of the Standard Range version.

Tesla began deliveries of Texas-built Model Y in April and has been gradually ramping up production at the site amid challenges. 

The EV maker aims to produce 10,000 vehicles per week at the factory by the end of the year.

See Also: Elon Musk Reacts To Prediction Of Volkswagen Overtaking Tesla By 2024

Why It Matters: The development follows Musk’s recent comments that Giga Texas and Giga Berlin, two of its recently opened factories, are losing “billions of dollars” with “tonnes of expenses and hardly any output.”

Musk said Giga Texas is losing "insane money" and elaborated on the challenges the factory is facing. 

“We had challenges with the 4680 [battery] ramp, with the structural battery pack plan, and then ironically, the tooling necessary for the making of the 2170 cells is stuck in China,” Musk said.

“It will take more effort to get this factory to high volume production than it took to build it in the first place."

Tesla’s immediate priority is to get Giga Berlin and Giga Texas functional, and Giga Shanghai fully back up. 

Price Action: Tesla shares closed 1.8% lower at $685.47 on Wednesday, according to data from Benzinga Pro.

Read Next: Here's Why Volkswagen CEO Thinks Tesla Is Weakening Itself Right Now

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