Tesla CEO Musk wants to double US production within two years
Musk wants the commitment to double vehicle production in the US within two years to be seen as “support of the policies of President Donald Trump and [a demonstration of] confidence in the future of the United States.” At least that is what the Tesla CEO announced yesterday on his online platform X. Musk did not go into further detail.
The US manufacturer is currently struggling with weakening sales figures across the globe. For instance in Europe, but also in China. So far, it is unclear to what extent the drop in sales can be attributed to Elon Musk’s political activities or if the recent facelift of the Model Y has caused buyers to hold off. With the start of deliveries and the production ramp-up of the facelift in China, the US and Europe, important steps have recently been taken to ensure that in a few months’ time it will be possible to better assess the actual demand for the Model Y Juniper – until then it remains just speculation.
Regardless of this, Musk now wants to strengthen the US as a production country. Although the absolute production figures from the plants in California and Texas are not known, the current production capacities are. In the latest annual report, Tesla listed an annual capacity for California of 100,000 premium cars (Model S and Model X) and over 550,000 volume vehicles (Model 3 and Model Y). In Texas, 250,000 Model Ys and 125,000 Cybertrucks could be built annually. Meanwhile, pilot production of the Tesla Semi is said to be underway at the Nevada plant. However, the company does not provide a production figure for the electric truck.
| Location | Model | Production capacity |
|---|---|---|
| California | Model S/X | 100,000 |
| Model 3/Y | >550,000 | |
| Shanghai | Model 3/Y | >950,000 |
| Berlin | Model Y | >375,000 |
| Texas | Model Y | >250,000 |
| Cybertruck | >125,000 | |
| Nevada | Tesla Semi | pilot production |
Source: Teslas Q4/2024 Annual Report
It is not certain, but it is likely, that Musk’s announcement will have consequences for plants operated or planned elsewhere. For example, it seems illogical for Tesla to double production in the US and yet build a factory in neighbouring Mexico. As is often the case with Tesla, it remains to be seen to what extent Musk’s announcement will actually be reflected in business operations.
Because one thing is clear: the Tesla boss is not only concerned about his company, but also about his political image as an advisor to President Donald Trump. And because the two have been trading favours lately, Trump just promoted Tesla in front of the White House. He chose to buy a Tesla in a media-effective way – and that after repeatedly speaking very harshly about electric cars in the past.
x.com, apnews.com, apnews.com (a collection of Trump statements against electric car in recent years)
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