More than 2 million Tesla per year; will the company cope with the ambitious task?

As a result of increasing the production capacity of its enterprises worldwide, Tesla Inc. (TSLA) may release at least 2 million electric vehicles next year. The dynamics of production recovery indicate that this plan is more than real. Wedbush analysts believe that expanding production capacity will allow Tesla to produce even more cars — from less than 1 million in 2021 to 2 million in 2023. Wedbush expects that against this background, quotes can soar to $360 in the next 12 months. Tesla’s manufacturing capabilities are overgrowing. 

In particular, the Shanghai plant closed at the beginning of the year and is now intensively expanding production. Tesla noted that after the forced downtime, production volumes at the important plant recovered and increased to a record level. Additionally, management announced continued improvements at its plant in California and increased production at new plants in Texas and Berlin. Thus, the projected 2 million deliveries look achievable even in the current state. 

Tesla does not announce its intention to slow down investments in expanding production capacity. Moreover, the management indicated that it expects to fully utilize the current production capacity by the end of the year. Elon Musk, the CEO of Tesla, says that the company has a good chance of making 40,000 cars a week this year. This would mean the company would make more than 2 million cars annually. The head of the company also said that 10–12 more plants. The problem with global supply chains is still a risk for Tesla. It can cause production delays and stop the delivery of already-present electric cars. To reach this goal next year, Tesla needs to cut down on these risks as much as possible.