Elon Musk Says Tesla Will Produce 20 Million Electric Vehicles a Year Before…

According to Elon Musk, within the next seven years, he expects Tesla to produce over 20 million new vehicles per year. As he said, five years would also be enough, but under the conditions given, reaching this figure is “possible, but unlikely.”

Tesla Inc (NASDAQ: TSLA) CEO has highly ambitious plans for the leading electric vehicles maker. Today, early in the morning, Elon Musk wrote that Tesla would produce as many as 20 million cars a year before 2030. Notably, the figure is 50 times more than the 365,000 vehicles Tesla made last year and 50% more than the 367,500 vehicles it sold last year.

Back in the last quarter of 2019, Tesla saw the record vehicle production of almost 105,000 cars. According to Elon Musk, within the next seven years, he expects Tesla to produce over 20 million new vehicles per year. As he said, five years would also be enough, but under the conditions given, reaching this figure is “possible, but unlikely.”

Last week, Elon Musk also said the company stood good chances of seeing a record quarter for the three months to September. In Q2 2020, Tesla delivered about 90,650 vehicles against the expected 72,000 giving allowance to the effects of the COVID-19 pandemic in the quarter. With a couple of days to the end of the current quarter, Tesla aims to surpass this number in a growth sustaining push.

Recently, Tesla said it would sue the US government and its Trade Representative Robert Lighthizer due to the decision of the U.S. President Donald Trump administration to impose tariffs on items Tesla imports from China. The specific tariffs known as List 3 and List 4 accommodate numerous specific items, going from raw materials to electronic components.

Tesla Stock Reacts to the News from Elon Musk

On September 22, Tesla held a “Battery Day Event” that coincided with the annual meeting of Tesla stockholders. There, Elon Musk promised a cheaper Tesla car with Tesla-made batteries by 2023. According to Tesla CEO, the car which would be fully autonomous. As Musk has said, the vehicle would be available for $25,000, making it the cheapest car the company has produced so far. The news did not inspire investors, and Tesla stock fell 7%. In addition, the company’s market value dropped $20 billion within two hours after trading closed on the same day.

On Friday, Tesla stock closed 5.04% up, $407.34 per share. In early trade today, its price makes up $426.31 (4.66% up). Tesla’s market cap is $379.56 billion. Year-to-date, Tesla shares are 386.86% up.

In the first half of this year, the demand for cars fell because of the pandemic. As a result, Tesla sales plunged by 15% from the second half of 2019. Tesla stock collapsed as well, with reaching the lowest of $72.2440 per share. On August 31, Tesla stock reached the all-time highest closing price of $498.32.

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