Tesla (TSLA) is planning massive output from Giga Texas in Q1 2023

Tesla (TSLA) is planning a massive ramp up in Model Y production output from Gigafactory Texas in Q1 2023. In the meantime, the situation is a bit more complex in the United States with the pending tax credit.

Tesla has been keeping us updated on progress in the production ramp at Gigafactory Berlin, which has been producing 2,000 Model Y vehicles per week since last month. The automaker is also simultaneously ramping production up at Gigafactory Texas.

Tesla is a bit more tight-lipped, however, on the production rate at the Austin factory.

Tesla confirmed a production rate of 1,000 Model Ys a week back in June and confirmed having produced its 10,000th Model Y in September. But, the company never confirmed a production rate of 2,000 units per week, like it did for Gigafactory Berlin.

Nonetheless, we now learn that Tesla is feeling extremely confident about the production ramp at Gigafactory Texas.

A reliable source familiar with the matter told Electrek that Tesla is currently preparing for 75,000 Model Y vehicles to come out of Gigafactory Texas next quarter (Q1 2023).

That would put Tesla’s production rate at Gigafactory Texas at over 5,000 units per week throughout the whole quarter.

Even though Tesla is preparing for that kind of output in Q1 2023, it is not in a hurry to get there in Q4 as it is still establishing the logistics to be able to handle that kind of volume increase in the United States.

5,000 units per week is generally Tesla’s goal for volume production and where Tesla wants to be with the Model Y at Giga Texas before moving its focus to Cybertruck production.

Additionally, sources familiar with the matter told Electrek that Tesla is dealing with some level of cancellations in the United States right now due to long wait times leading to some customers’ situations changing between the time they place their order and the actual delivery.

Furthermore, Tesla is also dealing with some customers looking to push their deliveries into next year to take advantage of the upcoming new EV tax credit. As we previously reported, Tesla is not as accommodating as other automakers when it comes to the new EV tax credit, and it is holding its customers to their order contracts.

They can’t push deliveries to try to secure the tax credit that comes into effect next year.

Due to this situation, Tesla appears to be nervous about finding itself with a lot of vehicles in inventory in the United States – like it did last quarter.

Electrek’s Take

We have been starting to see signs that Tesla is having some demand issues in the United States, but it seems to be temporary, primarily due to the tax credit.

And if that’s the case, you can also expect a surge in demand when the tax credit comes into effect in January.

It appears that Tesla is getting ready with a massive new output at Gigafactory Texas.

You would think that the automaker could also try to ramp up production sooner in Q4 and build inventory for when that demand comes, but it looks like the automaker is being more cautious and trying to avoid having too many vehicles in inventory at the end of the quarter.