Tesla Celebrates the Milestone of Producing Its 10 Millionth Electric Vehicle
Tesla has announced it has produced its 10 millionth electric vehicle, a landmark achievement shared via a social media post on Thursday. This significant milestone has been reached just six years after the company hit the one million mark.
Achieving 10 million vehicles means Tesla is halfway to fulfilling one of the four main “product goals” necessary for unlocking the full value of CEO Elon Musk’s $1 trillion compensation package, which was approved by shareholders last year. By 2035, Musk is required to oversee the production of 20 million vehicles, achieve 10 million active subscriptions for its “Full Self-Driving” software, deliver one million robots, and deploy one million robotaxis on the roads.
Despite experiencing several years of significant growth thanks to the Model 3 and Model Y, Tesla has yet to sell 2 million vehicles in a single year. If the current pace continues, or even slows down, the company may not reach the 20 million milestone until the early 2030s.
Interestingly, Tesla faces less competition in the U.S. market now, as many major manufacturers have reduced their involvement in the electric vehicle sector, and newer companies like Rivian and Lucid Motors have struggled with scaling production. However, Tesla still faces challenges at home; its U.S. sales dropped by 13% year-over-year in the second quarter, prompting the company to explore markets in Japan, Australia, and Lithuania to attract new consumers.
Musk had previously suggested that Tesla would reach an annual production of 20 million vehicles by 2030, but this goal was revised as the company’s sales began to slow. Nevertheless, among the four outlined product goals, this is the one closest to realization for Tesla.
Recently, the carmaker reported nearly 1.5 million subscribers for its Full Self-Driving service; however, it remains unclear whether this figure includes free trials, which would not be counted towards the official targets set by the board. The company is still in the early stages of developing its robots and robotaxis.
Additionally, Musk must boost the company’s profit (adjusted EBITDA) to $400 billion by 2035 to access the full benefits of his stock package. This goal currently appears challenging, as Tesla’s adjusted EBITDA stands at around $3.27 billion and has been declining due to substantial discounts, a reduction in saleable regulatory credits, and a significant rise in expenditures for new initiatives such as artificial intelligence and robotics.
In terms of competition, the only other company approaching Tesla’s level is China’s BYD, which has recently reported it has built and sold over 17 million “new energy vehicles,” with approximately half of that number being hybrids.
