Tesla just made its 10 millionth EV
What's the story
Tesla has achieved a major milestone by producing its 10 millionth electric vehicle (EV). The company announced the news on social media, celebrating this achievement as a testament to its growth and innovation in the EV industry. The milestone comes just six years after Tesla produced its one millionth vehicle.
Financial implications
Halfway to goal of Musk's $1T pay
The production of 10 million vehicles puts Tesla halfway toward one of four core "product goals" tied to Elon Musk's $1 trillion pay package.
The targets include building 20 million vehicles by 2035, achieving 10 million active subscriptions for its Full Self-Driving software, delivering one million humanoid robots, and deploying one million robotaxis on the road.
Production hurdles
Tesla has never sold 2M vehicles in a single year
Despite its growth, Tesla has never sold two million vehicles in a single year.
If the current pace continues, it could take until the early 2030s for the company to hit the 20 million mark.
In its home market, US sales fell 13% year-over-year in Q2. To counter this, Tesla has been targeting newer markets like Japan, Australia, and Lithuania.
Growth
Musk needs to increase Tesla's profit to $400B
Tesla recently reported nearly 1.5 million FSD subscribers, but it is unclear if free trials are included in the count.
The company is still in the early stages of building bots and robotaxis.
Musk also needs to increase Tesla's profit (adjusted EBITDA) to $400 billion by 2035 to unlock the full share package, a task that looks challenging at present as adjusted EBITDA currently sits at around $3.27 billion amid heavy discounts and increased spending on AI/robotics initiatives.