Too much demand for vehicles is a problem most, if not all, automakers would love to have, especially after the crazy few years we've all been up against. Being overloaded with orders is typically a good thing until it becomes a problem. It seems Tesla can't possibly keep up with the demand for its vehicles, and especially the Model Y crossover, so it's time to expand Fremont yet again.
According to recent reports, Tesla has already filed paperwork with the City of Fremont related to the upcoming expansion. While the Model 3 is Tesla's most popular vehicle, and the most popular EV across the globe, the Model Y is gaining ground. Once Tesla releases a cheaper Standard Range version of the crossover, it's assumed demand will grow even more.
Currently, Tesla produces the Model Y at General Assembly (GA) 4.5. Why 4.5? You may remember when the news popped that Tesla was building cars in a tent. It was actually a "temporary" sprung structure, which has now become permanent. Tesla has been building the Model Y in the "tent" since February 2020.
With the 64,000 square foot expansion more permanent, complete with sewer and plumbing lines, etc., Tesla aims to increase its production capacity. According to Teslarati, the permits filed with Fremont reference "4.5 Expansion," “GA4.5 South Expansion Shell & Utilities,” and “GA4.5 Battery Marriage Tool Improvement.”
This all comes at a time when all automakers, including Tesla, are facing a chip shortage that may last well into next year, or longer. Not to mention all of the chaos caused by the COVID-19 pandemic.
As Tesla moves forward with expansion at Fremont, it's also getting closer to completing the construction of two new factories, one in Texas and one in Germany. In the meantime, the Silicon Valley automaker is also producing Model Y crossovers at its Shanghai Gigafactory, and shipping them abroad.