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Tesla’s goal of producing 1 million cars per year is closer than everyone thinks
In classic Tesla fashion, Elon Musk shared an almost insane goal back in 2016. While speaking with analysts in a conference call, Musk remarked that he believes Tesla has a shot at achieving a production rate of 1 million cars a year. This statement was met with much criticism, considering that just the year prior, Tesla delivered just over 50,500 vehicles.
As the US auto industry is starting what could very well be a long road to recovery from a pandemic, it is starting to become evident that Musk’s goal may end up being feasible after all.
The year has been cruel to the automotive industry. Back in April, North American car factories that are known to produce about a million vehicles a month ended up producing fewer than 5,000 units. But while the year has been painful for the car industry, some recovery started becoming evident in recent months. Just last month, some large automakers reported sales that beat their 2019 numbers, hinting that an upswing may be on the way.
Amidst this trend is the one outlier in the US auto industry: Tesla. The electric car maker has felt the full brunt of the pandemic, as shown in the extended closure of its Fremont Factory from mid-March to mid-May. Despite this, the company was able to show a profitable second quarter, and this past Q3, it delivered a record 139,300 vehicles, up 50% from Q2 2020. The company also produced 145,036 cars in the third quarter, up 76% from the second quarter.
What is rather remarkable is that Tesla has decided to stand by its initial goal of delivering half a million cars this 2020. This target was already ambitious without the pandemic. With the pandemic, the company’s refusal to adjust its delivery targets seems downright insane. Yet if the company’s Q3 and potential Q4 results are any indication, Tesla may actually be closer to its 1-million-car-per-year goal than expected.
Tesla has delivered about 318,000 vehicles so far this year. For Tesla to meet its goal of delivering 500,000 vehicles in 2020, the company would have to deliver over 180,000 cars in the fourth quarter. This is yet another record for the company, and it is one that would likely be challenging. RBC Capital Markets analyst Joseph Spak, in a statement to The New York Times, noted that while 500,000 cars is “not an unattainable goal,” achieving it now “seems increasingly difficult.”
Yet despite these challenges, the fact that Tesla seems to be in striking distance of its pre-pandemic 2020 delivery goal represents an incredibly notable shift for the company. Just a little over a year ago, after all, Tesla was a much different automaker. It was still an embattled EV company, seemingly scrambling to raise money while TSLA short-sellers circled like sharks smelling blood in the water. Tesla ultimately proved its critics wrong, posting four profitable quarters as of Q2 2020.
If Tesla could come close or achieve its goal of producing and delivering over 180,000 vehicles in Q4 2020, the company would only be 70,000 cars short of a 250,000-vehicle-per-quarter run-rate. Once that is achieved, hitting 1 million cars per year in both production and deliveries will only be a matter of time. Granted, this is a rather ambitious step, but one must note that Tesla is pretty much taking on 2020 with just one and a half factories.
Today, Tesla only produces cars in two sites: the Fremont Factory and Gigafactory Shanghai. And even then, Giga Shanghai is not yet fully ramped, with the facility yet to start Model Y production and the Model 3 line has only started operating with 3 shifts. This means that this year, Tesla has pursued its ambitious goals with a main factory in the US that was closed for over a month and a Chinese plant whose Phase 1 is now just hitting its stride.
These circumstances will likely change by next year. Tesla is in the process of building two new vehicle production facilities: Gigafactory Berlin and Gigafactory Texas. Both facilities are designed to produce high-volume vehicles, with the German plant manufacturing the Model Y and Texas building the Cybertruck, a vehicle that has received well over half a million orders, as per remarks from CEO Elon Musk.
Of course, Tesla’s production and deliveries still only comprise a small part of the auto market. Yet despite this, the company’s rapid rise and the equally quick emergence of the electric vehicle sector means that Tesla is poised to dominate an industry that is still forming. Michelle Krebs, an executive editor at Cox Automotive, a market research firm, said it best in a statement to the NYT.
“Tesla is the EV market right now. It’s still a tiny part of the market, and they are going to face more competition, but they are now well established,” she said.
News
Tesla removes Model S and X custom orders as sunset officially begins
In a significant development that marks the beginning of the end for two of its longest-running models, Tesla has removed the custom order configurator for the Model S sedan and Model X SUV from its website.
Tesla has officially started the “honorable discharge” of the Model S and Model X with a massive move, removing the two vehicles from Custom Orders and only offering inventory options.
It is the latest move Tesla has made to pull the Model S and Model X from its lineup, a decision CEO Elon Musk announced during its last quarterly earnings call.
Tesla brings closure to flagship ‘sentimental’ models, Musk confirms
In a significant development that marks the beginning of the end for two of its longest-running models, Tesla has removed the custom order configurator for the Model S sedan and Model X SUV from its website.
As of April 1, visitors to tesla.com/model-s and tesla.com/modelx are now redirected exclusively to limited inventory listings rather than a design studio, allowing buyers to select paint, wheels, interior options, or performance upgrades. Only pre-built vehicles currently in stock are available for purchase or lease.
Tesla CEO Elon Musk confirmed the change directly on X, posting: “Custom orders of the Tesla Model S & X have come to an end. All that’s left are some in inventory.”
Custom orders of the Tesla Model S & X have come to an end. All that’s left are some in inventory.
We will have an official ceremony to mark the ending of an era. I love those cars.
This was me at production launch 14 years ago: pic.twitter.com/6kvCf9HTHc
— Elon Musk (@elonmusk) April 1, 2026
We will have an official ceremony to mark the end of an era.” Accompanying the statement was a throwback photo from the Model S production launch in 2012, underscoring the emotional weight of the decision.
Musk had first signaled the phase-out during the company’s Q4 2025 earnings call in January, describing it as time for an “honorable discharge” of the programs to free up resources at the Fremont factory for Optimus humanoid robot production and autonomous vehicle initiatives.
The Model S, introduced in 2012, and the Model X, which followed in 2015, were instrumental in establishing Tesla as a premium electric vehicle leader.
The sedan offered class-leading range and acceleration, while the SUV’s signature falcon-wing doors became an iconic feature. Together, they proved EVs could compete in the luxury segment. Yet sales volumes have dwindled in recent years as Tesla prioritized higher-volume Model 3 and Model Y vehicles.
The flagships now represent a tiny fraction of overall deliveries, making continued custom production inefficient as the company accelerates toward robotaxis and next-generation platforms.
Prospective buyers are urged to act quickly. Remaining U.S. inventory vehicles—some nearly new—may include incentives such as lifetime free Supercharging, Full Self-Driving (Supervised) capability, and premium connectivity, depending on configuration.
Leasing options start around $1,699 per month for select Model X units, though exact pricing and availability fluctuate. International markets, including Europe and China, have already seen similar restrictions in recent months.
The move aligns with Tesla’s broader strategy to streamline its lineup and redirect manufacturing capacity toward autonomy and AI-driven products. While some enthusiasts lament the loss of personalization, the company views the transition as necessary progress.
Tesla has indicated that once the current inventory sells out, new Model S and Model X vehicles will no longer be offered.
For loyal owners and fans, the promised “official ceremony” may provide a fitting send-off. In the meantime, the website change serves as a clear signal: the era of bespoke flagship Teslas has quietly concluded, and the focus has fully shifted to the future.
Elon Musk
SpaceX files confidentially for IPO that will rewrite the record books
SpaceX files confidentially for a record-breaking IPO targeting a $1.75T valuation and $80B raise, driven by Starlink growth and its xAI merger.
Elon Musk’s rocket and satellite company submitted its draft registration to the U.S. Securities and Exchange Commission today for an initial public offering, targeting June at a $1.75 trillion valuation. This would be the largest in history.
SpaceX has filed confidentially with the SEC, first reported by Bloomberg. SpaceX would be valued above every S&P 500 company except Nvidia, Apple, Alphabet, Microsoft, and Amazon.
The filing uses a confidential process that allows companies to work through SEC disclosures privately before initiating a public roadshow. With a June target, official details through a formal prospectus is expected to go public in April or early May, after which SpaceX must wait at least 15 days before beginning investor marketing.
While SpaceX is best known for its Falcon 9 and Starship rockets, the $1.75 trillion valuation is anchored by Starlink, its satellite internet service. Starlink ended 2025 with 9.2 million subscribers and over $10 billion in revenue, which is a figure analysts project could reach a staggering $24 billion by the end of 2026. A February all-stock merger with xAI, Musk’s artificial intelligence venture, further boosted the valuation.
SpaceX officially acquires xAI, merging rockets with AI expertise
Bank of America, Goldman Sachs, JPMorgan Chase, and Morgan Stanley are lined up as senior underwriters. SpaceX is also considering a dual-class share structure to preserve insider voting control, and plans to allocate up to 30% of shares to retail investors, which is roughly three times the typical norm.
Elon Musk
Elon Musk hints at “official ceremony” with throwback photo to close Tesla Model S, Model X chapter
Elon Musk promises an official ceremony to mark the end of Tesla Model S and Model X production.
Tesla has officially begun winding down production of the Model S and Model X, sending farewell emails to U.S. customers on March 27 and updating the website to reflect the end of the line. Shoppers visiting Tesla.com now find only a limited set of Model S and Model X inventory units available for purchase, with no option to configure a new factory build. The move formalizes what CEO Elon Musk announced on the company’s Q4 2025 earnings call in January, when he said it was “time to basically bring the Model S and X programs to an end with an honorable discharge.”
Musk posted on X a throwback photo of himself speaking at the Model S production launch in 2012, and noting “We will have an official ceremony to mark the ending of an era. I love those cars.”
The mention of an official ceremony is notable. Tesla has not held a formal farewell event for a vehicle before, and Musk’s wording suggests this will be something deliberate rather than a quiet line shutdown. Given that Musk’s X post shows a photo of him on stage with a microphone in front of an audience at the Fremont factory, it wouldn’t be too far-fetched to expect a closing ceremony to take place at the same location. Perhaps? Whether it becomes a public event, a private gathering for employees, or a livestreamed moment on X remains to be seen.
Custom orders of the Tesla Model S & X have come to an end. All that’s left are some in inventory.
We will have an official ceremony to mark the ending of an era. I love those cars.
This was me at production launch 14 years ago: pic.twitter.com/6kvCf9HTHc
— Elon Musk (@elonmusk) April 1, 2026
The Model S first went on sale nearly fifteen years ago and was Tesla’s first fully in-house designed vehicle, proving that an electric car could be fast, desirable, and capable of long distance on a single charge. The Model X followed in 2015, turning heads with its unmistakable and distinctive falcon-wing doors, while becoming one of the first all-electric SUVs on the market. Tesla’s two flagship vehicles would ultimately push legacy automakers to take all-electric transportation seriously and help fund development of the more affordable Model 3 and Model Y.
By 2025, however, both models had been reduced to a rounding error in Tesla’s sales figures. Musk was direct about what comes next, stating “We are going to convert that production space to an Optimus factory. It’s part of our overall shift to an autonomous future.”
Elon Musk’s $10 Trillion robot: Inside Tesla’s push to mass produce Optimus
That shift is already underway. Tesla officially started Optimus Gen 3 production at its Fremont factory in January 2026, with the line targeting a run rate of one million units per year. The Gen 3 robot features 22 degrees of freedom per hand, runs on Tesla’s AI5 chip, and shares the same neural network architecture as Full Self-Driving. A dedicated Optimus factory at Gigafactory Texas is also under construction, with a planned annual capacity of 10 million units. The production lines that once built the Model S and Model X are being converted to support that ramp.
Tesla confirmed it will continue to support existing owners with service, software updates, and parts for as long as people own the vehicles. For buyers still interested in a new example, remaining U.S. inventory is discounted and the window is closing fast.
Tesla removes Model S and X custom orders as sunset officially begins
SpaceX files confidentially for IPO that will rewrite the record books
Elon Musk hints at “official ceremony” with throwback photo to close Tesla Model S, Model X chapter
Elon Musk says Tesla is developing a new vehicle: ‘Way cooler than a minivan’
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