Elon Musk: Tesla is growing EV manufacturing based mostly on anticipated demand for self-driving

Elon Musk introduced that he’s pushing Tesla to extend its electrical car manufacturing as a result of what he anticipates will quickly be elevated demand for autonomous driving.

Tesla’s manufacturing plans have undergone important modifications over the past 5 years.

The automaker began the last decade rising at a roughly 50% annual charge and aimed to supply 20 million automobiles yearly by 2030.

Now, Tesla has a manufacturing capability of lower than 3 million autos, and it’s utilizing roughly solely 60% of this capability as a result of low demand.

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This example has led Tesla to rethink its plans for brand spanking new factories, together with its beforehand introduced gigafactory in Mexico.

As we speak, Tesla launched its Q3 monetary outcomesand CEO Elon Musk took the chance to announce that the automaker will now improve manufacturing:

I really feel assured in increasing Tesla’s manufacturing. So that’s our intent, to develop as shortly as we will our future manufacturing. I used to be reticent to do this till we had readability on attaining unsupervised full self-driving, however at this level, I really feel like we’ve acquired readability and it is sensible to develop manufacturing as quick as we moderately can.

The CEO acknowledged that he’s “100% assured” that Tesla will clear up unsupervised self-driving – a declare he has made yearly for the final six years.

Musk stated that when individuals can textual content inside their automobiles, demand gained’t be a difficulty:

Right here’s the killer app: actually, what it comes all the way down to is, “Are you able to textual content when you’re within the automobile?” And when you inform somebody, “Sure, the automobile is now so good you will be in your cellphone and textual content all the time when you’re within the automobile,” anybody who should buy the automobile will purchase the automobile. Finish of story.

He added that probably the most important improve in manufacturing will come from Cybercab, which he expects will enter manufacturing in Q2 2026.

The car lacks a steering wheel and pedals. Due to this fact, if Tesla doesn’t clear up unsupervised self-driving by then, will probably be ineffective.

The CEO reiterated that he expects Tesla to take away the security monitor from its Robotaxi in Austin, Texas, by the top of the 12 months and launch unsupervised FSD in shopper autos on the identical timeline.

Electrek’s Take

Growing manufacturing based mostly on presumed demand coming from a function, unsupervised self-driving, that isn’t completed, and that you’ve got been constantly improper in predicting.

What might presumably go improper?

Elon at all times says that “individuals don’t perceive how impactful self-driving will probably be.” I believe they do. He’s complicated individuals not believing his self-driving timelines with individuals not believing in self-driving.

If Tesla does ship unsupervised self-driving in HW4 autos, I do consider that it’ll end in a big improve in demand.

Nevertheless, I don’t assume Tesla is as shut as Elon is main shareholders to consider.

Tesla could or could not take away the security drivers from its Robotaxis in Austin, however that’s a geo-fenced areas with a bunch of limitations.

Turning on unsupervised self-driving in shopper autos and Tesla taking duty for the system is a completely totally different factor, and the automaker is just not prepared for it.

However there’s some good that might come out of this. If Tesla will increase Mannequin 3 and Mannequin Y manufacturing in anticipation of full self-driving, it might end in decrease costs.