According to several sources (Tesla employees), CEO Elon Musk held a company-wide call yesterday and informed all the employees about how this will be an amazing year for Tesla — and how the next few years will be even better.
Producing 1 million cars this year seems to be Tesla’s prime target and Musk is positive that Tesla is all set to accomplish this. Last year, Elon Musk said that the automaker would produce 500,000 cars and it did, however, it fell a negligible short of 500k deliveries.
Tesla Gigafactory Shanghai had a big role to play in the last year’s vehicle production and delivery goal. Musk says that Giga Shanghai is expanding rapidly. Since China is the biggest electric vehicle market on the planet, Tesla should be able to monopolize there. FYI, Tesla’s Chinese competitor NIO is actually struggling with finances these days and Tesla had to come to its rescue (Yahoo Finance reported).
A study by a Chinese financial research company estimates that Giga Shanghai alone will produce more than 500,000 Model 3 and Model Y cars in 2021.
If ~500k car deliveries in 2020 can make Tesla (TSLA) profitable across all 4 quarters of the year, ascend the company to the Fortune 500 index, imagine what would 1 million cars mean. If Tesla achieves this target this year, it might be well on its path of becoming the world’s biggest company as Elon Musk hinted in a tweet late last night.
Tesla’s Q1 2020 delivery push is already in its full swing. Telsa owners and enthusiasts have witnessed many car carrier trailers delivering Tesla Model 3, Y, and S vehicles in the United States and in Europe.
If Giga Berlin also starts producing Model Y compact electric SUVs this year, Tesla will not have much of a hard time reaching the ambitious 1 million cars production and delivery number.
Producing a million cars this year will also be easier for Tesla as the automaker is continuously improving and speeding up its manufacturing processes and increasing the efficiency of its machines. One such example is the following stamping press at the Fremont car factory, the throughput has increased up to 125% over time (machine cycle-time reduced to 4.3 seconds from 9.7 seconds).
The more advanced Giga Casting machines currently working at Giga Shanghai and Fremont for the Model Y diecast also save time, effort, and the number of parts required to manufacture the rear and front single-piece underbody castings.
Now Tesla is taking it one step ahead and has ordered the world’s first and largest 8,000-ton die-casting machine. These new super-heavyweight machines will further shrink the production time and increase the production output exponentially.