Elon Musk announced a significant increase in the production of Tesla

Elon Musk announced a significant increase in the production of Tesla

Elon Musk said over the next 12 months, Tesla will produce more than 500,000 electric vehicles and they will all be ready for Autonomous driving with the option of Full Self-Driving.

To reach 500 000 per 12 months, Tesla must make and sell not less than 125 000 cars per quarter.

Increase production from the current 300,000 to 500,000 a car requires a growth of approximately 67% yoy. Assuming that the production Model S and X will remain at around 100,000 units per year, up to 400,000 cars a year should grow production Model 3.

If Tesla manages to produce and sell 500,000 electric vehicles a year this will significantly increase the revenue thanks to the option of Autonomous driving, which is sold at a price of $5,000 for each model (as from may 1 will rise to $8 000), respectively, profitability of the brand will also achieve high performance.

A total of 100 000 vehicles (20% of the planned) with option of Autonomous driving purchased, for example, for a robotic taxi services will provide an income of $ 500 million.

If growth of manufacturing and its automation, Tesla doesn’t have to be problems from the point of view of income business to start Tesla Model Y, which will provide another factor for the growth and development of the company.

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