Elon Musk, CEO of Tesla, posted the picture of a red Model Y on his Twitter along with his team, announcing the one-millionth car on March 9th, it took the company only 12 years to reach the mark since it produced its first car back in 2008.
However, with the rising demand in electric cars all over the world, it is expected Tesla will reach the two million mark much sooner. For example, a recent earning report predicted half a million deliveries by the end of 2020.
So, Why’s That a Big Deal?
Even though the figure looks still small when you compare Tesla with giants like Volkswagon and Toyota, that produces more than ten million cars in just one year, but there is a significant difference between Tesla and other manufacturers. Tesla only produces electric cars.
The quick rise in monthly production also indicates a high surge in demand. Tesla is currently producing four models of electric cars, Model S, Model X, Model 3, and now the latest addition, Model Y. This is the same car Elon Musk posted on his Twitter when he made the ceremonious announcement. It’s a shiny red car with excited Tesla employees posing around it outside the companies facility in Freemont, California.
Also, the fact that the company let the Model Y out in the first quarter of 2020 shows the giant production leap the company took this year. While according to plan, Model Y was set to be released in the fall of 2020. This means the company is quite ahead of its targets. In short, good news for Tesla devotees, we should expect to see the Cybertruck releasing sooner than expected as well.
Busting the Competition
In 12 years since the Tesla story began with the Model S, this one-millionth car speaks volumes about what we should expect from the company. It has achieved what no other electric automaker has done before. Only last year, Tesla beat BYD company from China, delivering more than 800,000 electric vehicles towards the end of 2019, while BYD lagged at about 700,000.
Another aspect that would have been a tie-breaker for Tesla, even if its numbers hadn’t surpassed BYD, was the fact that it only produces electric cars. On the other hand, BYD’s total production rate also includes the sales of its plug-in hybrid.
Tesla’s Ardous Journey Towards the One-Millionth Car
Mind you; an uncomplicated future was never seen as the fate of the only electric car company in America back when Elon Musk took over. Initially, Tesla was handled by Eberhard and Tarpenning, before it was handed over to Musk in 2008. He created his master plan for producing electric vehicles in America, back in 2006. After he took control of the company, he used his visionary planning to turn Tesla into the awe-inspiring establishment we know today.
Mainly, his masterplan required the company to produce high-end, expensive cars, that would further fund the production of more affordable electronic vehicles in the future. The plan could have backfired badly, and even though it didn’t, the journey was not always a smooth one for Tesla.
Only two years ago, in 2018, the company faced its worst year in terms of production. At that phase, even Musk was doubtful about the future of EV production in the US. There was a ramp-up during the production of Model 3, and Tesla’s decision to launch a whole new sustainable energy business took a toll on production that year. However, the company made it through the mist.
The recovery time was unexpectedly short for Tesla after the production hell it went through that year. 2019 came with a bang, and the company saw an astounding rise in production, deliveries, revenue, and profit. The stock market price surged, and the company started pumping out its electric cars from its second Gigafactory in China.
All of that enabled Tesla to reach beyond expectations, towards the millionth car it beholds today. A company whose basic survival was doubted at its initial phase is set to come at par with leading giants in the automobile industry.
How Will this Affect the Global Market?
The fact that made this possible was the unprecedented consumer demand that’s essential for any company to survive. Tesla aims to bring out the type of cars that people want today. Also, the company’s profile fits the image for sustainable living that the world is striving for at this stage. Attributing to that, today, Tesla’s Model 3 is the ultimate bestselling model globally.
Meanwhile, because of Tesla, there are more and more automobile companies joining the electrification bandwagon. May it be the Chevy Bolt EV or the Taycan by Porsche, the increase in the production of EVs wouldn’t have been a reality if it weren’t for a small company with a vision, that survived.
So what does the near future have in store for Tesla? As far as the updates go, the company is currently building its first production facility in Berlin, Europe. Additionally, with the Model Y already out, we’ll likely see the upcoming line of Tesla vehicles, including the Roadster, Cypertruck, and the Semi, sooner than expected.
Seemingly from all its efforts, the company expects to raise its production rate even higher in the coming years. By 2020, Tesla expects to produce up to 150,000 at its facility in China.
Their current annual production rate is 400,000 vehicles a year. Combined with the Freemount facility production rate and the new facility in Berlin, Tesla is set to produce more than 600,000 cars annually from next year.
The question for EV enthusiasts around the world right now is how the company will celebrate its one-millionth car. The company can keep the car for itself, representing its ceremonious achievement, or even organize a worldwide competition where the lucky winner would get the car. Let’s wait and see!