Photo by Bram Van Oost on Unsplash

Tesla has enormous plans: Elon Musk’s production vision

Tesla establishes electric vehicle manufacturing facilities in Berlin and Austin, Texas, and extends its operations in China and California. Its objective is to sell millions of automobiles each year and maintain electric vehicles’ global supremacy.

Earlier this week, CEO Elon Musk gave the first German-made Model Y sedans to excited customers at the inauguration ceremony of the new Tesla facility in Berlin, and he jokingly estimated that Tesla will achieve an annual output of up to 20 million vehicles by the early 2030s.

“I believe it’s bold, but not unrealistic, that we might manufacture 20 million vehicles in ten years,” Musk remarked in answer to Tesla plant workers’ queries. “And that would be a terrific amount since there are 2 billion active automobiles and trucks in the world, so 20 million would represent 1% of the worldwide fleet every year.”

Analysts predict that Tesla will increase worldwide output from over 1 million cars last year to more than 2 million by 2024. And that’s just with the most recent pronouncements from the corporation.

“We will be able to grow into other areas and introduce other goods because we are able to boost production and match demand in our present markets,” Musk said in Berlin.

Extensive demand
At full capacity, the German facility is planned to manufacture 500,000 automobiles each year. According to JP Morgan, the factory will produce 54,000 units this year, 280,000 the next year, and half a million in 2025.

The establishment of new plants in the heart of Europe and the United States is a significant gamble for both Tesla as a brand and the electric car industry. It also comes at a time when there is a worldwide scarcity of semiconductors.

However, Tesla’s recent expansion is noteworthy in the automobile business. Tesla increased its sales from 367,500 in 2019 to almost 500,000 in 2020 and 936,172 last year. According to Experian statistics, it is the top in the US luxury market in terms of new registrations this year, having surpassed BMW in January.

Production in Berlin will relieve strain on the Chinese facility, which previously supplied Europe with the Model 3 small car and the Model Y compact crossover.

Tesla’s ability to meet Musk’s $ 20 million production goal is mainly dependent on factors outside the company’s control. Even Musk hinted in Berlin that the figure may reach closer to 10 million, which would still place Tesla among the world’s top automobile makers in today’s rankings.