Tesla Inc. (NASDAQ: TSLA) may build at least 2 million electric vehicles next year as a consequence of increased manufacturing capacity at its global enterprises. The dynamics of output recovery imply that this approach is more than feasible.
According to Wedbush analysts, the expansion of production capacity would allow Tesla to build even more vehicles, increasing from less than one million in 2021 to two million in 2023.
Tesla’s production capabilities are quickly expanding. The Shanghai facility, which was shuttered at the start of the year, is currently rapidly growing output. Tesla Inc. (TSLA) claimed that during the forced shutdown, production levels at a major factory not only recovered, but also reached a new high.
In addition, management claimed continuous improvements at its California factory and boosted output at new units in Texas and Berlin. Thus, even in the current situation, the expected 2 million shipments appear feasible.
TSLA has not stated that it intends to limit its investment in expanding production capacity. Furthermore, management stated that the present production capacity will be completely utilised by the end of the year.
Elon Musk, Tesla’s CEO, believes the firm has a decent chance of producing 40,000 cars per week this year. This equates to an annual output rate of more than two million units. In addition, the company’s CEO stated that there are plans to develop additional 10-12 facilities.
The danger for Tesla remains the unsolved issue with global supply chains, which might cause not only a delay in manufacturing but also the stoppage of delivery of electric vehicles that have already been manufactured. Tesla Inc. (TSLA) must reduce such risks in order to meet its target next year.
TSLA stock fell -2.89% in the last week and increased 2.56% in the previous month. During the previous quarter, this company’s stock climbed 22.12%. The stock has gained 6.72% in the previous six months and 23.26% year to date. This stock’s year-to-date (YTD) price performance is presently -18.22% at the time of writing.