BYD earnings declined in 2021. Capital spending last year exceeded capex from 2018-20 combined, with huge outlays for new auto, battery and chip plants. EV and PHEV production capacity has surged and continues to increase. With sales skyrocketing, and BYD's selling prices rising, that is spurring massive revenue and profit gains this year.
We've just achieved a significant milestone on our road to Tesla Roadster production. Our first Validation Prototype was assembled at the Hethel facility in the U.K. and was recently airlifted to our San Carlos, Calif., workshop to commence system testing.
According to Tesla's recent quarterly report, the automaker's installed production capacity across the globe grew by at least 850,000 units from Q1 2022 to Q2 2022. The Fremont factory alone saw about a 10 percent increase in production capacity, adding the potential for an additional 50,000 Model 3 and Model Y vehicles. Tesla revealed that the Fremont factory just hit the 2-million vehicle production milestone recently as well.
He also said that Tesla's team in Brandenburg, Germany, recently hit a milestone of being able to produce 1,000 cars on a rolling seven-day basis. Musk recently visited the German factory and the company expects it to ramp production to make 5,000 cars per week by the end of 2022. Initially, Reno was sending drive units to Germany to aid in that effort.
However, it was unclear at the time of Tesla's announcement just how many of those cars were actually bound for US customers. In the past, Tesla has often focused one month a quarter on delivering vehicles to countries outside of the US, and it was thought likely that the company was doing everything possible to ensure it didn't break the 200,000 US sales mark before the end of Q2. But on Thursday morning, the company updated the page on its website dealing with EV incentives in light of reaching this milestone.
In some ways, the slow ramp-up of Model 3 production actually helped Tesla out here. If things had gone swimmingly and the company was able to meet Elon Musk's original claims for production volume, the 200,000 cap would surely have been reached much sooner. And now that the IRS incentive for Teslas is simply time limited and not based on number of cars delivered, any increased production in Q3 or Q4 2018 just means more Tesla customers who will be able to benefit from the full incentive.
To put these production figures into perspective: The Wolfsburg Volkswagen Factory -- the group's headquarters and "the world's largest single car manufacturing complex" with a surface area of 6.5 km2 --produced just over 700,000 cars in 2018, according to the company. All German carmakers combined made 428,000 electric vehicles in 2020 in the country (fully battery electric and plug-in hybrids combined), and exported 62 percent of them.
Tesla has achieved a significant production milestone at its Gigafactory Berlin-Brandenburg plant in Grünheide, Germany, producing 2,000 Model Y electric cars in a single week. If maintained, this could equate to an annual production rate of approximately 100,000 units for the European Market.
"During the month of July, we have repeated weekly production of approximately 5,000 Model 3 cars multiple times while also producing 2,000 Model S and X per week. Having achieved our 5,000 per week milestone, we will now continue to increase that further, with our aim being to produce 6,000 Model 3 vehicles per week by late August." Tesla Second Quarter 2018 Update
Second, I'm not sure Jonas is right about the supply chain questions. Yes, Tesla has been trying to deal with an assortment of supplier issues, and one of its solutions is to bring production of some components in-house. But again, the Model 3 doesn't have to be difficult build. With a factory in Northern California, Tesla is a bit off the normal, Midwest supplier and southern US grid. But that really just means adding in some additional transport time for parts. 2b1af7f3a8