April 26, 2024
Elon Musk stated that these models would be manufactured at existing factories to maximize capacity before considering new manufacturing facilities
Musk projected a 50% production increase over 2023, suggesting that most capacity would be utilized by the end of 2024, with overflow into 2025
Tesla currently has factories in US, Germany, and China, and has produced 1.8 million vehicles by the end of 2023
Future vehicle lineup would commence production in the latter half of 2025, dispelling speculations about abandoning plans for an affordable car
Elon Musk has revealed that Tesla’s plans to produce its US$ 25,000 affordable electric car in India and Mexico may come to fruition around 2025 or later. He stated that these models would be manufactured at existing factories to maximize capacity before considering new manufacturing facilities.
Tesla currently has factories in Texas, Fremont (US), Berlin (Germany), and Shanghai (China), and had produced 1.8 million vehicles by the end of 2023. However, its global capacity stands at 3 million vehicles annually.
During a recent earnings call, Musk projected a 50% production increase over 2023, suggesting that most capacity would be utilized by the end of 2024, with overflow into 2025.
This timeline aligns with India’s electric vehicle policy, which requires a manufacturing presence by 2027, and Tesla’s plan to launch new models from mid-2025, as disclosed in the earnings call.
Musk affirmed that the new vehicles, including the more affordable models, will be able to be produced on the same manufacturing lines as the current vehicle lineup. While this approach may result in less cost reduction, it allows Tesla to fully utilize its 3 million vehicle capacity, enabling a 50% growth over 2023 production “before investing in new manufacturing lines.”
He also confirmed that the future vehicle lineup would commence production in the latter half of 2025, dispelling speculations about abandoning plans for an affordable car.
Source: Business Standard