Tesla will halt production at Giga Belin amid teething issues. The factory which begun production in March and in June saw the milestone of 1,000 vehicles a month roll off the line.

The line will halt for tweaks and upgrades for two weeks in July resuming production toward the end of the month. Historically such upgrades are typical as each new Giga factory pushes the envelope with innovations not previously deployed. Shanghai will also halt its Model 3 and Model Y lines for upgrades this month. It is rumoured the plant will switch from a two shift per day to three shift (around the clock) after the shutdown. This will bring Berlin closer to its planned capacity of 500,000 vehicles per year. 

Elon Musk recently referred to the plant, along with the Texas plant, as being “Giant money furnaces”. However these remarks are interpreted as referring to the anticipated fixed costs associated with bringing these factories online. Given the bullish comments of Musk that 2022 will see production increase by 50% year on year, and that the same comments last year were vindicated it is anticipated that both factories will eventually become gigantic money printers. 

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