Tesla’s recent Investor Day event brought with it a few announcements, including the automaker’s plans to construct a new Gigafactory in Mexico. The plant comes as a part of Tesla’s hopes to increase its production
told shareholders that Tesla expects to cut manufacturing costs in half, partially through an updated set of manufacturing processes, and through its next-generation vehicle platform planned for production at Giga Mexico. In the next decade, Tesla hopes to reach an annual production capacity of 20 million units, far higher than the 1.3 million sold in 2022.
“The desire for people to own a Tesla is extremely high,” Musk said at Investor Day. “The limiting factor is their ability to pay for a Tesla.” “Tesla is unlikely to ramp up new models fast enough to meet volume expectations of 2.4 million in 2024, especially since the next-gen platform appears to still be in the design phase,” Bernstein wrote . “Moreover, we believe that price cuts underscore the highly competitive nature of the auto market, where sustained high margins and high volume is unprecedented.”
Higher volumes of auto production mean lower manufacturing costs, as pointed out by, Lars Moravy, Tesla’s vice president of vehicle engineering. During the event, Moravy emphasized how crucial manufacturing and a new-generation EV platform would be to the company’s ability to deliver on long-term production targets.
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