News
Tesla is about to make producing 1 million EVs per year unremarkable
It’s a bit amazing that just over two years ago, Tesla was struggling to hit a production rate of 5,000 Model 3 per week at the Fremont Factory. The target, which proved elusive enough to warrant extreme attention from TSLA short-sellers, was achieved at the end of Q2 2018, six months behind the company’s initial schedule. Over the course of 2018, Tesla delivered a whopping 245,240 cars, a new record for the company.
Since then, Tesla has steadily ramped its vehicle production capabilities, and today, the company is aiming to deliver around half a million electric cars by the end of the year. That’s despite a pandemic that has shaken the world, which has resulted in shutdowns in Tesla’s two production facilities, the Fremont Factory and Gigafactory Shanghai. Giga Shanghai is only in its first year of operations too and is not yet fully ramped.
But Tesla, if any, is a beast of optimism and possibility. It’s the one carmaker that is still growing strong during a pandemic, and its vehicles, particularly the Model 3 sedan and the Model Y crossover, are seeing strong demand from consumers. With this in mind, Tesla has noted that it intends to ramp its vehicle production capabilities to the millions within the next years. It would not be surprising at all if the company announces that it would be producing and delivering 1 million cars by next year.
Such an idea might sound implausible now, but so was the idea of pursuing a delivery goal of 500,000 vehicles in a year that’s weighed down by a pandemic.
What is rather noteworthy is that over the years, Tesla has steadily established itself as a capable automaker that has what it takes to deliver on its goals. The company may not always be on time and it may hit snags with the build quality of its first-production vehicles, but it does stay true to its word. The same is true for Elon Musk. FSD may have been delayed for some time, for example, but the limited beta that’s testing today is very real, and its potentials are vast.
With these milestones comes a normalcy of sorts for Tesla. While the company made headlines when it first broke the 5,000 Model 3 per week barrier, for example, such things are simply unremarkable today. And that’s really where Tesla’s magic lies. The company simply has the capability to make something remarkable seem normal. This was true with regards to the public’s perception of the power and capabilities of electric cars against their gas-powered rivals. This will likely be true when it comes to vehicle production capabilities as well.
This is already starting for the electric car maker. Just recently, data from the Chinese Passenger Car Association (CPCA) revealed that Tesla China was able to produce 22,292 Model 3 in Gigafactory Shanghai in the month of October. This translates to a run-rate of 275,148 vehicles per year. Interestingly enough, leaks from industry insiders have suggested that Tesla China is aiming to produce 550,000 cars in 2021, with 300,000 of those being the Model 3.
Considering Tesla China’s October production figures, it would appear that the company is already well within striking distance of its 2021 Model 3 production goal. It wouldn’t be surprising if Tesla hits a run-rate of 300,000 China-made Model 3s by the end of the year, and it would be quite silly to assume that the company would stop optimizing Gigafactory Shanghai at that level.
If Gigafactory Shanghai can build 550,000 cars in 2021, Tesla would have a pretty solid chance of producing 1 million vehicles in one year. This would no doubt be a milestone for the company. But if Tesla’s previous years are any indication, it would only take a few years before vehicle production rates in the level of millions will be considered expected, or even better, unremarkable. Once that happens, then one could probably declare that the electric car age is truly beginning.
News
Tesla dispels reports of ‘sales suspension’ in California
“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.”
Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”
On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”
Tesla enters interesting situation with Full Self-Driving in California
Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”
The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.
However, Tesla said that its sales operations in California “will continue uninterrupted.”
It confirmed this in an X post on Tuesday night:
This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.
Sales in California will continue uninterrupted.
— Tesla North America (@tesla_na) December 17, 2025
The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.
One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.
Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.
This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”
News
New EV tax credit rule could impact many EV buyers
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.
After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.
However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.
Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.
🚨UPDATE: $7,500 Tax Credit Portal “Closes By End of Year”.
This is bad news for pending Tesla buyers (MYP) looking to lock in the $7,500 Tax Credit.
“it looks like the portal closes by end of the year so there be no way for us to guarantee the funds however, we will try our… pic.twitter.com/LnWiaXL30k
— DennisCW | wen my L (@DennisCW_) December 15, 2025
We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.
However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.
If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.
This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.
Elon Musk
Elon Musk takes latest barb at Bill Gates over Tesla short position
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.
Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.
Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’
Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.
The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.
Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:
Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now
— Elon Musk (@elonmusk) December 17, 2025
Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.
“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.
Tesla CEO Elon Musk sends final warning to Bill Gates over short position
Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”
“Gates is a huge liar,” Musk responded.
It is not known whether Gates still holds his Tesla short position.
Tesla dispels reports of ‘sales suspension’ in California
New EV tax credit rule could impact many EV buyers
