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The Expansion of Tesla

The Model 3 is Tesla’s newest sought-after model in the company’s line. It’s currently undergoing a production crisis to meet the end goal of a million cars by 2020. Presently, Tesla has manufactured 3,000 of the Model 3 cars since its announcement of the new model. At its current production rate, the total number will fall well short of the projected target. Tesla’s struggle to catch up to its target number is the result of limited manufacturing space at its main facility in Fremont, CA. With production not up to speed, Tesla has escalated the process to acquire new office space, storage areas, and manufacturing facilities within the surrounding areas.

Tesla released a master plan in 2016 to add up to 4.6 million square feet to its Fremont location—doubling the size. The larger factory will allow Tesla to hire over 3 thousand additional and increase production capabilities. The proposed expansion could increase production by up to 500,000 cars annually. In addition to expanding the Fremont facility, Tesla leases 2 off-site Fremont buildings where an additional 1,000 employees can work. The leased buildings are located near Dumbarton Circle as an off-site location. Hopefully, the wait for the new Model 3 for eager buyers won’t be too long.