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Tesla’s goal of producing 1 million cars per year is closer than everyone thinks

(Credit: Evan Jarecki/Instagram)

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5 years ago

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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. 

Tesla Model Y (Photo: Teslarati)
Tesla Model Y (Credit: Teslarati)

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.”

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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. 

(Credit: @FutureJurvetson/ Twitter)

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. 

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla officially launches Robotaxi service with no driver

Tesla launches its driverless Robotaxi in Austin, marking the first time the company has offered its ride-hailing service anywhere in the world.

Published

13 hours ago

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June 22, 2025

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Credit: Tesla

Tesla has officially launched its Robotaxi service platform with no driver in Austin, Texas. This is the first time Tesla has allowed driverless Robotaxis to pick up members of the public and take them around via the ride-sharing service the company has been developing for several years.

Teslarati had a first-hand look at the launch of the Robotaxi service in Austin, as we are part of the Early Access group, which is a limited group of people that will be able to hail a driverless Model Y in the geofenced area in Texas.

The Robotaxi platform is currently geofenced in a small portion of South Austin. It is roughly thirty minutes from end to end, and Tesla’s strategy is prioritizing safety through a number of safeguards that are implemented in this early program.

There is a fixed price of just $4.20 for any ride, regardless of duration, at this time. This will not always be the case, however. When a wider customer base is allowed to hail Robotaxis, ride fares will vary on things like travel distance, length of trip, and potentially time of day.

The first rides kicked off at around 2 p.m. local time in Austin. They are confined to the back row of the Model Y, while a Tesla safety monitor sits in the passenger seat. Passengers will have their personal media and streaming settings available to them as the car will sync with their driver profiles.

Rides are requested through a Robotaxi addition on the regular Tesla iOS app:

The safety monitor is only there to ensure things go smoothly with each ride. They do not have pedals or a steering wheel on their side. The car is doing everything during these Robotaxi rides.

The big takeaway from Robotaxi’s launch is that Tesla will begin generating additional revenue through this new stream. As concerns over demand and annual growth rate continue to take focus from doubters, Tesla’s continuous rollout of the Robotaxi fleet will expand potential revenue opportunities, potentially creating billions upon trillions of dollars in value.

This is something Tesla permabulls like Cathie Wood of ARK Invest and Dan Ives of Wedbush have talked about for years: the launch of a driverless Robotaxi fleet that generates new income streams for Tesla.

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First Look at Tesla’s Robotaxi App: features, design, and more

Tesla is using a Robotaxi section of its normal smartphone application to enable access to driverless vehicles roaming around Austin.

Published

14 hours ago

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June 22, 2025

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Tesla has officially launched the Robotaxi platform to a limited number of people, giving them the ability to ask for a ride from a driverless Model Y in Austin, Texas. But how do you hail a ride?

Through the Tesla Robotaxi app, which officially launched on June 22 as the company initiated the first rides for non-employees, people can request rides from driverless cars that are traveling around Austin. Teslarati gained access to the app as we are members of the Early Access Rider program.

There are only a very limited number of vehicles operating within the fleet currently, as Tesla has said the number is between 10 and 20 vehicles.

Tesla is using a Robotaxi section of its iOS smartphone app for the launch, confirming what the company said prior to the program’s maiden voyage: there would not be a separate app for the Robotaxi.

First Look at the Robotaxi App

The Tesla Robotaxi app, similar to the official Tesla App, features a simple interface that should be familiar to anyone who has used a ride-sharing app in the past. Downloading the app brings users to a sign-in page, which features a Tesla Model Y Robotaxi as a header image. Users can then log in or create an account to access the service.

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A Clean, Simple UI

Upon logging in, users are presented with a clean user interface that allows them to select a destination and pickup point. Upon booking, users are provided with a real-time update on when their Robotaxi will arrive. Users could also select some settings for their upcoming ride, such as their preferred temperature in the cabin.

Smart Suggestions

If there is one evident thing about Tesla’s Robotaxi App, it is the fact that it is smart and designed to make driverless ride sharing services feel as normal as possible. While waiting for their ride, customers are presented with a number of tips that should help them understand their robotaxi better.

These include tips on how to use the Model Y’s door handles, as well as information about the vehicle’s light signals. The app also includes smart suggestions on destinations that riders can visit using their Robotaxi. These include cafes, restaurants, parks, shopping centers, and other pertinent locations.

Credit: @BLKMDL3/X

Cybercab Theme

Another thing that is evident with the Robotaxi App is its Cybercab-inspired color theme. This is evident from the login page, which already features the golden hues of the dedicated two-seater autonomous car. The golden Cybercab color theme is used to great effect inside the app itself as well.

No Tips, at Least for Now

As observed by Tesla owner-enthusiast @BLKMDL3, Tesla is not accepting anything more than the service’s flat $4.20 rate per ride for now. If customers wish to leave a tip for the service, they would be presented with a page featuring Tesla’s hedgehog mascot saying “Just Kidding.”

Tips will likely be an option in the future, but for this stage of the Robotaxi rollout, it appears that the service really will follow a flat rate system.

 

 

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Watch Tesla’s first driverless public Robotaxi rides in Texas

Tesla’s first driverless Robotaxi rides for non-employees are starting with the first drives beginning today.

Published

15 hours ago

on

June 22, 2025

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Tesla has finally launched its Robotaxi platform to members of the public for the first time in Austin, Texas.

The Tesla Robotaxi platform is a driverless ride-hailing service that will enable people to use their cars for passive income as they will ride around, find riders, and drive them to their destinations in exchange for money. For right now, Tesla is using company vehicles, the Model Y specifically, and has opened up rides to a small number of people who are a part of the Early Access Program.

Teslarati is a member of the Early Access Program, as we were invited to Austin for the launch. We have gained access to Tesla’s new Robotaxi app, which lies within the main Tesla iOS app, and we are able to use the Robotaxi fleet during the Early Access Program.

The first rides are already occurring as Tesla launched the platform at around noon local time in Austin on Sunday:

The video shows that Tesla’s initial Robotaxi rides are being quite cautious. Currently, the Robotaxis can only travel within a geofenced portion of Austin. This area will eventually be expanded.

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For the time being, Tesla is keeping a safety rider in the vehicles with occupants, but they do not take up the driver’s seat. Instead, they are sitting in the passenger’s seat. This is simply a safety precaution that Tesla is using to keep Early Access riders safe, although there are ways riders can alert Tesla of any issues.

In the initial communication Tesla sent to members of the Early Access Rider program, the company said the Cabin Camera would be deactivated for the duration of their rides, but can be used if the rider needs support. Additionally, the in-cabin microphone will be deactivated, but can also be used to get in contact with support if there are any issues during the ride.

We have seen a variety of different Robotaxis rolling around Austin for the past several weeks. The company has been testing the vehicles in a very limited way for the time being, and it only has between 15 and 20 Robotaxis in the city for the launch. This number will slowly grow over time.

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