• It took Tesla a dozen years to make one million electric vehicles.
• The 10 million EV sales milestone came just six years after that.
• Tesla sales rebounded in the second quarter, but the road ahead is more challenging than ever.

Tesla produced its 10 millionth electric vehicle this week at its Fremont, California factory, the company said Wednesday in a post on X. It's a milestone that took just six years to reach after the plant built its one millionth car back in 2020. It makes Tesla the first dedicated electric vehicle maker in the world to hit eight figures in production. 

It’s a remarkable achievement proving that EVs can be made successfully and profitably at an enormous scale. That's something many established automakers are still working toward as they ramp up their own EV businesses. Chinese juggernaut BYD hit 10 million new energy vehicle sales back in 2024, but that figure includes both battery electric vehicles and plug-in hybrids.

Ten million is also halfway to 20 million, which is one of the operational milestones baked into CEO Elon Musk's roughly $1 trillion pay package, approved by shareholders last year. Musk doesn't unlock that particular tranche until Tesla crosses the 20 million mark, so this week's announcement puts a hard number on how far there still is to go. 

And that road ahead is anything but easy. Tesla’s growth has stalled badly over the past two years while competition continues to intensify globally. After delivering a record 1.81 million vehicles in 2023, the company posted two consecutive years of declining sales. Analysts have attributed that slowdown to a combination of an aging vehicle lineup, growing competition, and consumer backlash tied to Musk's political activities.

Tesla expected the Cybertruck to be a volume seller driving further growth for the company, but it turned out to be a massive sales flop, although it does have some loyal fans. Its robotaxi rollout also has been particularly slow, with a few Model Y robotaxis now operational in the Bay Area, Texas, and Florida, most with human supervisors onboard.

Tesla Cybercab, LA Auto Show 2024

Photo by: InsideEVs

There are some signs of the automaker’s passenger vehicle business stabilizing. The second quarter of this year was a bright spot with a surprising 25% year-over-year growth, which came on the back of high gas prices which spurred EV demand in Europe. The automaker also launched the longer-wheelbase Model Y L in the U.S. this month, and is reportedly working on a smaller Bolt-sized EV, although that’s not officially confirmed by the automaker.

Either way, Tesla will need fresh products to keep its automotive business growing. The company's car business still funds its increasingly expensive bets on AI, robotics and autonomous driving. Sustaining that investment will require selling a lot more than 10 million vehicles.

Contact the author: suvrat.kothari@insideevs.com

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