Expansion At Tesla Fremont Factory Shows Possible Increased Model Y Production Capacity

The Model Y is Tesla Inc's TSLA newest vehicle. A mass-market, full electric hatchback crossover. This is one of the most popular vehicle segments in America, and Elon Musk has said he expects the Model Y to outsell the Model S, 3 and X combined.

An article from Tesmanian shows Tesla has added another vehicle assembly line at their vehicle production facility in Fremont, California.

On Feb. 27, 2020, a permit was spotted for Tesla to build a new assembly line: GA4.5 (General Assembly 4.5). Now, a few new pictures show that a tent-like structure was constructed in less than two weeks, with a picture from June 29 showing no structure; a picture taken July 10 showing the outer shell nearly completed, according to Tesmanian.

Photo via Tesmanian.

This is not the first time Tesla will be constructing cars in a tent. During the Model 3 ramp up, Tesla struggled to produce enough vehicles to meet demand and make a profit. So the company quickly built a tent in which to manufacture more Model 3 vehicles.

Benzinga's Take: While some will scoff at Tesla building cars in a tent, it's only used for part of the process. If this is anything like the Model 3 ramp up, this is great news.

Tesla recently cut the price of the Model Y by $3,000, and demand already seemed to be high. With a price reduction, Tesla may need to produce a lot more Model Ys to meet demand.