Tesla Could Produce About 1M Vehicles in 2021, the Company's Suppliers Suggest

Photo Justin Kaneps for The New York Times

According to data from Tesla's suppliers, the company aims to produce one million vehicles in 2021. During the Q4 2020 Earnings Call, the CEO and CFO of the company said that growth in 2021 could exceed 50% from the year before.

The chairman of the gear maker Hota, who is Tesla's supplier, said in a recent video that Tesla is aiming to produce one million vehicles in 2021. Since the number of cars planned for production can be determined by the number of ordered parts, it seems likely that the supplier may have factual information about Tesla's goals.

Another Tesla supplier Sysgration, which manufactures the Bluetooth Tire Pressure Monitoring System (TPMS), is also reporting a significant increase in the number of units ordered. The company received an order for four million Bluetooth TPMS for Model 3 and Model Y, which equates to approximately one million vehicles.

Reduction gear supplier Hota, its chairman also reveals Tesla’s 1m unit target in 2021. At 6:25 - https://t.co/fb5i45DrsN

— Kelvin Yang (@KelvinYang7) April 20, 2021

During the Q4 2020 Earnings Call, Tesla CFO Zachary Kirkhorn said that the CAGR of volumes in 2021 will be 50%, and the company may significantly exceed this figure: "We continue to expect a long-term volume CAGR of 50%, of which we may materially exceed this in 2021." He stressed that the growth in production volumes will be especially noticeable in the second half of the year.

Tesla CEO Elon Musk also said that in 2021, the company could achieve growth of about 50% and this could be "meaningfully" above 50%. At the same time, he stressed that Tesla does not want to take on any obligations in delivery forecasts.

"I think this year, we may track to a fair bit above 50%, but we don't want to commit to that, but at least that's what it would appear, and the same again next year. It appears to be meaningfully above 50%."

Apparently, Tesla aims to produce about one million cars in 2021, however do not forget that these are optimistic goals and they can only be achieved if certain conditions are met. First of all, the company should focus on the earliest possible start of production of the updated Model S and X. If Tesla ramps up production quickly, then the delivery figures for these models could significantly exceed those of last year, as the updated models generated a lot of interest and an increase in the number of orders.

In parallel with this, Tesla should ramp up production at Giga Shanghai even more, although at the moment, it seems that everything is going even better than expected. If the factory in China continues to increase production, it could surpass the number of units originally planned for 2021. Also, the start of work of Giga Texas and Giga Berlin will likely play an integral role, which will have a direct impact on the results of 2021.

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