Key facts
- Tesla has produced its 10 millionth electric vehicle.
- The company produced its first million vehicles six years ago.
- Elon Musk's pay package requires Tesla to reach 20 million vehicles by 2035.
- Tesla has approximately 1.5 million Full Self-Driving subscribers.
- Tesla's adjusted EBITDA is currently around $3.27 billion and has been declining.
Tesla announced on Thursday that it has produced its 10 millionth electric vehicle, a significant milestone achieved six years after the company manufactured its one millionth car. This production landmark is crucial for CEO Elon Musk's performance-based compensation package, which includes a goal of producing 20 million vehicles by 2035.
Despite recent growth driven by the Model 3 and Model Y, Tesla has not yet achieved annual sales of 2 million vehicles. At its current pace, the company may not reach the 20 million vehicle target until the early 2030s. Competition is increasing, though major automakers have scaled back their EV efforts, and startups like Rivian and Lucid Motors face challenges in scaling production.
Tesla's U.S. sales decreased by 13% year-over-year in the second quarter, prompting the company to seek buyers in newer markets. Musk previously aimed for 20 million cars annually by 2030 but has since adjusted this target. The company has also reported nearly 1.5 million subscribers for its Full Self-Driving software, though it remains unclear if free trials are included in this figure. Development of robots and robotaxis is in its early stages.
Furthermore, Musk's pay package requires Tesla to increase its adjusted EBITDA to $400 billion by 2035. The company's current adjusted EBITDA is around $3.27 billion and has been declining due to factors such as heavy discounts, reduced regulatory credit sales, and increased spending on AI and robotics initiatives. In comparison, China's BYD has produced and sold over 17 million new energy vehicles, with approximately half being hybrids.