Tesla has been making waves in the automotive industry for years, and it seems like they're just getting started. With four car factories across China, Germany, and the US, the company is currently producing at an estimated run rate of over 2.1 million cars per year. In fact, they are on track to surpass BMW's global annual production run rate of 2.4 million by this summer. This is good news for anyone looking to buy an electric vehicle (EV) as it means that prices of Tesla vehicles are likely to fall even more.
Tesla's four car factories across China, Germany, and the US are currently producing at an estimated run rate of over 2.1 million cars per year, and are on track to surpass BMW's global annual production run rate of 2.4 million by this summer. pic.twitter.com/nmP75VwSS1— Sawyer Merritt (@SawyerMerritt) May 9, 2023
As someone who has been following Tesla's progress for a while, I can attest to the fact that their focus has always been on increasing production and reducing costs. This strategy has paid off in a big way, as the economies of scale that come with increased production have allowed Tesla to further reduce prices. It's a bit of a balancing act this year as they give up margins to keep demand up, but that's always been the plan.
Of course, there are those who are still waiting for even better prices before making the switch to an EV. As someone who would love to own a long range Model 3 at $30,000 flat out the door, I can certainly relate. However, I don't think Tesla is likely to go that low with the Model 3 anytime soon. They're saving that price point for the even cheaper built "Model 2" that they've been teasing for a while.
While the price point is certainly a consideration for many people, there are other factors to consider as well. Some people have expressed concerns about the interiors and paint jobs on Tesla vehicles. While I agree that there is room for improvement in these areas, I also understand that they are not necessarily a priority for the company right now. Their focus is on increasing production and reducing costs, and that's where they're putting their resources.
So, how long can Tesla keep this up?
Realistically, eventually, everybody who wants and can afford a Tesla will have one, and only the most extreme enthusiasts are going to replace theirs more than once every 5-6 years. However, I don't think Tesla is in danger of running out of people wanting to buy their cars anytime soon. Companies like Ford have been around for decades, and they haven't run out of people wanting to buy Fords yet. Tesla has a little time to figure out what their next move is going to be.
All of this is to say that it's a good time to buy an EV, and Tesla is at the forefront of the industry. They have a clear strategy and a mission that they're committed to, and they're making strides in production that are hard to ignore. It's an exciting time to be a part of the electric vehicle revolution, and I can't wait to see what the future holds.
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.