Tesla aims to build 1 million cars annually by 2020

 

teslaHigh-flying clean-energy industrialist Elon Musk has doubled down on his production plans in California. Tesla, his auto company, “took a major step toward its ambitious goal of one day building 1 million cars a year by seeking to double the size of its Fremont, Calif., assembly plant,” the Los Angeles Times reported. “Under a long-term zoning proposal submitted to Fremont’s Planning Commission, the electric car maker wants to eventually add 4.6 million square feet of space to its factory’s existing 4.5 million square feet.”

Musk “told analysts this spring that the Palo Alto-based automaker hopes to ramp up annual production to 500,000 vehicles in 2018 and build 1 million vehicles by the end of 2020,” the paper added. “The 2018 goal alone is nearly a tenfold increase from the 50,580 vehicles that Tesla produced last year in Fremont. The automaker has forecast this year’s deliveries at 80,000 to 90,000. Quality problems and production delays plagued the plant early this year and threatened sales plans. But the company said last week that those problems are behind it and that it expects to come close to its forecast for 2016.”

Broad deals

Musk has not hesitated to link up with government resources and opportunities in order to advance his business interests. This month, he aligned SpaceX closely to take advantage of President Obama’s call to use private industry to help bring Americans to Mars. “Within the next two years, private companies will for the first time send astronauts to the International Space Station,” Obama announced. “One of those private companies tasked with ferrying astronauts to the ISS and who will essentially return human spaceflight to American soil in late 2018 is SpaceX,” the Observer noted.

And last month, Musk inked a deal to change the way California backstops its energy needs. “Tesla Motors Inc. will supply 20 megawatts (80 megawatt-hours) of energy storage to Southern California Edison as part of a wider effort to prevent blackouts by replacing fossil-fuel electricity generation with lithium-ion batteries,” Bloomberg reported. “Tesla’s contribution is enough to power about 2,500 homes for a full day, the company said in a blog post on Thursday. But the real significance of the deal is the speed with which lithium-ion battery packs are being deployed,” the site added — “months not years.”

Outracing critics

As Musk has accelerated his increasingly ambitious plans, however, he has attracted a greater share of criticism toward the mechanics of his business operations. “The pressure is now on Tesla for a smooth launch of the relatively affordable Model 3. A quality product pumped out at low cost and high volume is essential to meeting the ambitious goals of the company and its investors, auto analysts say, whereas long delays could threaten the company’s reputation — and survival,” according to the Times.

Meanwhile, wariness has centered separately around SolarCity, a startup run by family members. “The Tesla-SolarCity deal looks so bad on paper that many investors worry it’s simply a bailout of SolarCity, which Musk co-founded and continues to chair,” the MIT Technology Review noted. “While SolarCity dominates the market for leasing, installing, and maintaining solar panels for residences and businesses, it’s racked up more than $2 billion in losses over the past five years. “

“Its business model requires it to raise huge amounts of capital to cover the up-front costs of providing panels for no money down to consumers on multiyear contracts. Since its inception, the company has accumulated more than $3 billion in debt against just $1.5 billion in revenue. Now it is having a harder time convincing people to lend it money.”

What’s more, Musk has had to contend with a rebellion among his own shareholders. “As of earlier this week, seven Tesla stockholders have filed lawsuits against Elon Musk over the proposed acquisition of SolarCity and alleged Musk was in breach of his fiduciary duties for not disclosing the proposed merger properly. Some of these stockholders are asking the judge for an injunction to prevent the merger from going through,” Recode reported. But the two companies have announced the merger is going ahead anyway. “The companies have set the date for their respective shareholders to vote on the $2.6 billion all-stock transaction for Nov. 17.”

9 comments

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  1. michael
    michael 13 October, 2016, 08:14

    Tesla and Solar City are frauds and Musk is a state and federal government welfare queen. Tesla will never build a million cars, its a false narrative.

    Reply this comment
  2. Queeg
    Queeg 13 October, 2016, 15:59

    Comrades

    Attornies, lobbyists, Publicans, Globalists with pluck these babies out of privately discreet showrooms………one mil. About rite-

    By the way….try online for your Yugo or Pinto oil change coupons!

    Reply this comment
  3. Spurwing Plover
    Spurwing Plover 13 October, 2016, 16:43

    If they came out with a car that runs on Hot Air then Moonbeam,Newsom,Al Gore,Obama and those GREENPEACE idiots would be very useful

    Reply this comment
  4. Mike
    Mike 13 October, 2016, 17:53

    If they are making a million cars, it will because the company was sold to a car company or President Fat HillAss bails them out. I have to admit a car grill that looks like Chelsea’s horsetooth smile could be a hit.

    Reply this comment
  5. Spurwing Plover
    Spurwing Plover 14 October, 2016, 23:07

    Moonbeamoble it runs on Green Nut Fuel the only trouble is it never stays in one place for very long

    Reply this comment
  6. Bill Gore
    Bill Gore 15 October, 2016, 06:29

    Does anyone remember THERANOS? I know, that’s SO ‘last month’….with its fraudulent ‘Edison’ machine that promised hundreds of blood tests from a single drop of blood. Theranos CEO Elizabeth Holmes was another California wunderkind, natty in her Steve Jobs obligatory black turtleneck and an alluringly creepy androgynous voice-absolutely perfect for our age as the next Jobs; except she WASN’T. Not even close. What everyone conveniently forgets about true luminaries like Jobs are the DECADES of FAILURE, STRUGGLE and REJECTION. They don’t just waltz into the limelight with billions in government loans in hand. This is why I’m very skeptical of Musk. What is he doing really? Is it cars? Space exploration? Renewable energy? Batteries? Just dive right in because you’re “brilliant”? Any one of these fields is technically challenging in the extreme. Musk only has to do ONE THING right, like deliver a marketable vehicle that breaks even, and much more will follow. Think Google….

    Reply this comment
  7. Bronson
    Bronson 15 October, 2016, 20:47

    Musk is smart to let the stupid govt people like asshole Jerry, and no, I could not be more arrogant Obimba, essentially take the downside risk, and leave the upside to him. Corrupt pieces of crap like Climate Brown adore Musk.He has a cool name.Elon sounds like a cologne marketed to the Hershey highwaymen. Electric cars, gay marriage, climate change, A cop named Elon would never shoot a black kid just killing a Korean family to be accepted by his tribe.

    Reply this comment
    • JimmyDeeOC
      JimmyDeeOC 16 October, 2016, 22:58

      He has a cool name.Elon sounds like a cologne marketed to the Hershey highwaymen….
      ———————-

      LOL! I did a spit take with that one.

      Reply this comment
  8. ricky65
    ricky65 16 October, 2016, 08:42

    A million more Musk-rat cars per year?.
    How, and where is the strapped public treasury ever going to come up with the money to subsidize that many automobiles?

    Reply this comment

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