Tesla Q3 2020 Earnings Call: 850K-1M Deliveries in 2021 'Not far Off,' per Elon Musk

by Eva Fox October 21, 2020

Tesla Q3 2020 Earnings Call: 850K-1M Deliveries in 2021 'Not far Off,' per Elon Musk

Featured image: Wu Wa

Tesla CEO Elon Musk hinted that, in 2021, the company could deliver from 850,000 to 1,000,000 units, which means that production could increase by 1.7 to 2 times where it is today.

Tesla vehicles are in high demand, which will only continue to grow for the foreseeable future--for a number of reasons. More and more consumers are looking to switch to green vehicles and government incentives are making electric vehicles even more affordable. In an effort to own the best electric car--which is not only qualitatively different from other EVs, but also from gas-powered cars--people are increasingly choosing Tesla.

In order to meet this growing demand (or at least try), the company continues to improve production lines in existing factories and build new ones. For now, Tesla has confirmed that it has an installed capacity to produce 500,000 vehicles in 2020.

At the same time, Giga Shanghai continues to improve and expand, and the production of Model Y there will soon begin. Construction of Giga Berlin and Giga Texas--which will start operating in 2021 and will significantly affect the production volume--continues at a swift pace.

During the Q3 2020 Earnings Call, Pierre Ferragu of New Street Research asked about the estimated production volume for 2021. Ferragu wondered if this number could be anywhere between 850,000 to 1,000,000 units delivered in the coming year. And while it is still too early for Tesla to make any predictions, Elon Musk hinted that Ferragu's assumptions may be correct. "Not far off," he said. 

Given that Tesla is aiming for aggressive growth, the rapid construction of factories could already start to pay off in 2021. Despite the fact that new factories will use novel processes and technologies in the manufacturing of Tesla vehicles, it is quite possible to achieve the set goals.

"We are increasingly focused on our next phase of growth. Our most recent capacity expansion investments are now stabilizing with Model 3 in Shanghai achieving its designed production rate and Model Y in Fremont expected to reach capacity-level production soon. During this next phase, we are implementing more ambitious architectural changes to our products and factories to improve manufacturing cost and efficiency."

© 2020, Eva Fox. All rights reserved.

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Article edited by @SmokeyShorts, you can follow him on Twitter




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