Tesla has always had ambitious goals with regards to its vehicle output. It’s difficult to wrap one’s head around it now, but there used to be a time when the idea of Tesla producing half a million cars a year was already considered unrealistic. But in the 2022 Cyber Roundup (annual shareholder meeting), Elon Musk noted that Tesla is looking to achieve a 2 million annual vehicle run rate by the end of 2022.
Musk shared the optimistic estimate during his opening remarks at the 2022 Cyber Roundup. According to the CEO, Tesla has recently achieved an annualized run rate of 1.5 million vehicles, and things will only increase from there. He credited the hard work of the Tesla team as the reason for the company’s milestones.
“We’re aiming to achieve a 2 million vehicle run-rate by the end of the year… Thanks to the hard work of the Tesla team, we’ve already been able to achieve a 1.5 million unit annualized run rate. And depending on how the rest of this year goes, I think we might get close to, or will get approximately at the 1.5 million mark, and will be exiting the year at a 2 million-unit run-rate,” Musk said.
Elon Musk was in high spirits during the annual shareholder meeting, particularly when he reminisced how ten years ago, Tesla was only able to produce fewer than 3,000 vehicles. Tesla just recently made its 3 millionth car, a notable milestone for a company that, when it was in its earliest stages, was described by Musk himself as stupidity squared.
Tesla’s vehicle ramp is due to a lot of factors, not the least of which is the company’s constant effort to make its production as efficient as humanly possible. This drive is ultimately what led to Tesla’s use of the Giga Press for the Model Y’s front and rear megacasts, as well as the company’s use of fewer and fewer robots to manufacture its vehicles. Next generation EVs like the Cybertruck will likely be even more efficient to produce.
Tesla’s production ramp this year will likely depend on the company’s capacity to accelerate its output in its existing factories, mainly the Fremont Factory and Gigafactory Shanghai. The Fremont Factory is already the United States’ highest output vehicle factory, and Giga Shanghai is on track to produce 3,000 vehicles per day after its upgrades are completed. As noted by the CEO, barring any unforeseen events, it does seem like very few things are standing in the way of Tesla hitting its 2 million annual vehicle run-rate target by the end of the year.
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