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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.
Tesla has extended its Bay Area ride-hailing service to include pickups and drop-offs at San Francisco International Airport (SFO). The update, shared via the company’s official channels on July 21, allows users in the region to request rides directly to and from one of California’s busiest airports.
The expansion builds on Tesla’s secured limousine permit for SFO operations. Public records show the permit became effective March 20, 2026, and remains active through January 31, 2027. Tesla vehicles operating the service now display authorized limousine permits issued by the City and County of San Francisco.
Our Bay Area rideshare service now goes to SFO ✈️
— Tesla AI (@Tesla_AI) July 21, 2026
Tesla’s ride-hailing program in California relies on Model Y vehicles equipped with Full Self-Driving (Supervised) technology. Human safety drivers remain present in compliance with state regulations, distinguishing the service from fully driverless operations.
The Bay Area geofence covers a broad area spanning north of San Francisco to south of San Jose, offering extensive connectivity across the region.
UPDATE: Elon Musk reveals why Tesla didn’t say ‘Robotaxi’ upon California launch
This SFO addition follows earlier progress at other Bay Area airports. Tesla previously expanded service to San Jose Mineta International Airport (SJC) in late 2025. The company had engaged with SFO, SJC, and Oakland International Airport officials as early as September 2025 to secure necessary approvals for passenger transport.
The service provides a new option for travelers seeking electric, app-based transportation integrated with Tesla’s ecosystem. Rides are booked through Tesla’s dedicated ride-hailing application, which handles matching, routing, and payments. Pricing follows standard ride-hailing models, with potential adjustments based on distance, time, and demand.
Tesla’s California ride-hailing program launched in July 2025 with an initial invite-only rollout in the Bay Area. It started alongside operations in Austin, Texas, marking the company’s second major U.S. market.
The Bay Area remains a primary focus in California, with service centered on high-demand corridors connecting residential, commercial, and now major transportation hubs. This latest airport integration represents a practical step in Tesla’s broader mobility ambitions within the state.
Tesla has officially revealed its 2026 Summer Update, which comes with a variety of crazy new features, including Navigation fixes that owners have been wanting for months.
Tesla routinely releases a larger update with the Spring, Summer, Fall, and Winter updates, where it ships a variety of new features, bug fixes, and other additions to customer cars.
The 2026 Spring Update featured things like “Hey Grok” voice assistance, a redesigned self-driving app, Unreal Engine visual upgrades, and more.
🚨 TESLA’S SUMMER UPDATE FOR 2026 IS HERE:
Featuring:
✅ Self-Driving Stats in Mobile App
✅ Caraoke with Scoring
✅ Automatic Navigation
✅ Preferred Routes
✅ Set Arrival Energy from Mobile App
✅ Send Custom Wraps from Mobile App
✅ Rear Display Lock
✅ Other Improvements
🔌… https://t.co/C9IW3egEhH
— TESLARATI (@Teslarati) July 21, 2026
Tesla’s Summer Release has about ten new features; we’ll show you each and detail them below:
New Grok Voice Commands
“Grok can now make phone calls, search and play music, adjust climate, open the glovebox, and answer questions about your Tesla.”
Self-Driving Stats in Mobile App
“View and share self-driving stats from the mobile app.”
Caraoke With Scoring
“Caraoke now scores your singing while in Park. High scores are saved to your Tesla profile.”
Automatic Navigation
“Automatic Navigation now adapts to your routine.
In addition to Home, Work, and upcoming calendar events, your vehicle can now suggest and route to places you visit regularly – like a school drop-off on the way to work, or the gym on the way home.”
Preferred Routes
“For a more personalized experience, navigation now prioritizes routes that you’ve taken before”
Set Arrival Energy from Mobile App
“Set your desired Arrival Energy from your phone.”
Send Custom Wraps from Mobile App
“Skip the USB drive and upload a custom wrap of your car from the mobile app. Instructions for creating a custom wrap here: https://github.com/teslamotors/custom-wraps.”
Rear Display Lock
“Kids can watch content on the rear screen, but only the front row can control it through the rear screen app.”
Other Improvements
- Find Superchargers by name when searching for a destination
- Add Apple Music songs to queue from search and artist page
- Set your preferred zoom level for the Self-Driving visualization
- Intro animations for new Model 3 and Y
Tesla’s reason for Starlink integration on Cybercab might surprise you, as the company’s Head of AI, Ashok Elluswamy, finally shed some light on the reason they are putting a satellite internet terminal on its ride-hailing-geared vehicle.
On Monday, Tesla officially confirmed that it would integrate Starlink V5 terminals into Cybercab vehicles, something many Tesla fans had figured the company would do, as the vehicle is primarily geared toward giving rides without any passenger intervention.
Starlink V5 directly integrated in Cybercab pic.twitter.com/FxzTtzjB6I
— Tesla (@Tesla) July 20, 2026
The ability to access the internet would allow riders to work or play in the car with their devices. It seemed like a more-than-reasonable feature to add to the Cybercab, which made its way off the production lines for the first time earlier this year.
Tesla reveals first vehicle model to receive Starlink integration
However, the move is not for the rider, as Elluswamy confirmed on Monday night. Instead, it’s actually for Tesla to be able to have a constant connection to the cars in the Robotaxi fleet so it can troubleshoot issues, contact riders, or resolve other issues.
Elluswamy said:
“It is still not required for safe operation of the vehicle. Connectivity is primarily meant for navigation, customer service and, in general, fleet management.”
It is still not required for safe operation of the vehicle. Connectivity is primarily meant for navigation, customer service and, in general, fleet management.
— Ashok Elluswamy (@aelluswamy) July 20, 2026
Many initially assumed the option of constant connectivity would be enabled on the Cybercab for passenger entertainment or work. With the Cybercab, passengers won’t be doing anything but enjoying the ride, so it seemed more than logical that they would be hanging out with Starlink internet access as an amenity.
However, Tesla’s primary concern with Robotaxi is safety, and nailing these first unsupervised rides is a crucial step to setting a good narrative on how effective driverless transportation can be.
Being able to get in touch with passengers or a vehicle if something is wrong is a crucial part of the overall experience, and preventative measures are being taken by Tesla to ensure a smooth process, even in the worst-case.
Tesla expands ridesharing service in California to new hotspot
Tesla reveals 2026 Summer Update with crazy fixes to Nav and more
