Tesla stock is finally showing signs of resurrection after the worst dip in 5 years. In a positive turn of events for the US electric vehicle company, Elon Musk, CEO of Tesla, announced that the company is targeting to double its US production in the next two years.
Meanwhile, US President Donald Trump voiced his support for his biggest political donor after Musk’s net worth plunged to $23 billion. Trump said, “… I said that I want to buy a Tesla and we just went to the front. He (DOGE Head and Tesla CEO, Elon Musk) had four beautiful cars there, and I bought one in front of the press. It was a very public purchase, and they’re beautiful and do a great job…”
Doubling down on production
Musk showcased four Tesla vehicles in front of the White House, giving Trump the opportunity to choose his new EV ride. During the event, the Tesla CEO said, “As a function of the great policies of President Trump and his administration, and as an act of faith in America, Tesla is going to double vehicle output in the United States within the next two years…”
Tesla has seen a decline in sales especially in its biggest markets — the U.S. and China. This is due to Musk’s political association, the public protests have affected the society’s image and growing EV competition. Reports indicate that Tesla currently has a production output of around 1.1 million vehicles. However, the company has yet to disclose its strategy for reaching its ambitious new target.
Tesla’s production capacity in the US
Tesla has been undergoing one of its toughest times with all sales, limited production and an image beating. Based on the report by Electrek, the actual rollout of Tesla units is less than the company’s installed capacity. Tesla manufactured around 50,000 units of its flagship EVs, the Model S and Model X, while the production capacity is double that in Freemont, California. The best-sellers, the Model 3 and Model Y, achieve around 600,000 units yearly but the plants can roll out over 800,000 units. The Cybertruck has been a big disappointment for Tesla as the company initially aimed to churn out 125,000 units annually, but managed to produce less than 50,000 units, according to an Electrek report.
