Tesla's Fremont Factory, Once Left For Dead By GM And Toyota During Great Recession, Tops North American Production For 3rd Straight Year
Benzinga · 01/29 11:28

A Tesla Inc (NASDAQ:TSLA) executive said on Saturday that the EV giant’s Fremont factory in California was the most productive factory across North America for the third consecutive year.

What Happened: “Thanks to all employees and suppliers supporting across our Fremont and Giga Nevada,” Tesla’s Senior Director for Vehicle Operation and Manufacturing Engineering Hrushikesh Sagar said in a post on X.

According to Tesla’s fourth quarter results, the EV giant manufactured nearly 560,000 vehicles at the Fremont factory in 2023, much higher than the record output of about 430,000 vehicles managed by the factory’s previous owner.

Tesla’s production capacity in California includes 100,000 units of its more premium Model S and X vehicles as well as 550,000 units of its lower-end Model 3 and Y vehicles, taking its overall capacity to 650,000 units.

See Also: Best Electric Vehicle Stocks

Why It Matters: The Fremont factory was sold to Tesla for $42 million by Japanese automaker Toyota Motor Corp in 2010 after its joint venture with General Motors Co ended as a result of the American automaker’s bankruptcy in 2009.

During Tesla’s fourth-quarter earnings call on Wednesday, CEO Elon Musk applauded the workers at the factory and said, “What would have been a rundown strip mall is the highest productivity car plant in the Americas. Think about that. It was derelict when we got it, and now it’s the most productive plant in this entire part of the world.”

“The Tesla Fremont factory has come a long way in 14 years after being abandoned by GM and Toyota during the great recession,” Tesla's Public Policy and Business Development Vice President Rohan Patel said on Saturday. “Remarkable that an electric vehicle factory is the most productive in North America, and produces the most American vehicles of any type.”

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