Tesla Considers Adding Production Facilities in Europe and Asia

4 years ago by Eric Loveday 6

The Tesla Factory Was Once Home To A Joint Toyota-General Motors Venture

The Tesla Factory Was Once Home To A Joint Toyota-General Motors Venture

Does Tesla Motors foresee in its future that it will outgrow its factory in Fremont, California?

 Fremont Assembly Facility

Fremont Assembly Facility

No…but that doesn’t mean that Tesla won’t construct some additional facilities around the globe and maybe even one more in the US.

Tesla’s Fremont factory has the capacity to produce 500,000 vehicle per year.  Tesla currently uses only a fraction of that capacity.  Expansion in Fremont is imminent.

Beyond expansion in Fremont, Tesla sees a future where it produces its vehicles on a few continents.

More specifically, Tesla is reportedly looking for a couple of factory sites in Europe and Asia.  This is not a major concern for Tesla at the moment, but when that affordable Gen III arrives, Tesla hopes to be able to produce it here in the US and at a couple of other locations around the globe.

Producing Gen III close to where it’ll be sold will keep costs in check, says Tesla.

As Tesla CEO Elon Musk told Bloomberg in a recent interview:

“We’ll try to locate those close to where people are, close to where the customers are, to minimize the logistics costs of getting the car to them.  I think long term you can see Tesla establishing factories in Europe, in other parts of the U.S. and in Asia.”

Source: Automotive News

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6 responses to "Tesla Considers Adding Production Facilities in Europe and Asia"

  1. Taser54 says:

    Tesla purchased a relatively modern plant at a bargain price. In the future, it would appear that Tesla will have to build their own plants and that will cost them $$$. Given Tesla’s current financial position, I don’t think that it will occur anytime soon.

    1. Foo says:

      They may have purchased the building, but I don’t think the robot-equipped, autonomous cart-based Model S production lines have anything to do with the old NUMI lines that were there before. The production lines are, for the most part, completely new.

      1. Just_chris says:

        Production assembly lines are almost always completely new for a new model, I don’t know much about making cars but I would have thought only the infrastructure (pipes, electrical, maybe clean room / paint booths, cranes, store rooms, etc.) would be used with just about everything else being new. I suspect what Tesla gained most from jumping into someone else’s grave was time. It always amazes me how long it takes to design and build a building and how much time can be saved if you tell someone they have x-space to do something rather than saying in an ideal world how much space would you need to….

        WRT new assembly plants around the world, that would make sense, as the market grows put assembly plants near the big markets. As for this resulting in a mass exodus of jobs I suspect not. Tesla has an assembly plant in the US but most of the components for that plant are probably already being imported meaning that a lot of the jobs Tesla are creating are probably already outside of the US or at least outside the factory gate. That is not to say that Tesla don’t (per car) use more American labor than other manufacturers that’s just to say that Tesla, like everyone else, is a global company and being a young company it has probably located its work force in the most logical (read cheapest) place to start with and shouldn’t need to restructure or move jobs anytime soon.

        1. Koz says:

          Most parts are not made elsewhere. Beyond the battery cells installed in the locally made battery packs, the Mercedes steering column parts, tires, and wheels there aren’t a lot of parts made elsewhere.

  2. Ocean Railroader says:

    The Europe factory might at least make since considering how they might bring in car parts from the US and put them together in Europe.

    China I got mixed feelings about in that it could turn into a flood gate to outsource all the jobs at Tesla.

  3. kdawg says:

    Does Tesla already have a plant in Europe?

    From another Inside EV’s article: “Welkom to the Netherlands, Model S! Dutch deliveries began and doors opened at our new Assembly Plant in Tilburg today!”

    http://insideevs.com/first-tesla-model-s-deliveries-now-underway-in-the-netherlands/