Tesla plans to sell 500,000 cars annually by 2020. To reach this goal and in the most profitable way, it will need to expand its production globally. Currently, the company manufactures its only model, the Tesla Model S, at its factory in Fremont, California in the USA. The upcoming Model X and the forthcoming Model 3 will also be built here.
“In the next few years, we expect to be focused on [the factory] in Freemont and the Gigafactory in Nevada,” Tesla CEO Elon Musk said in a conference call with investors. The strong dollar coming in the way of profitability and the ambitious sales growth plan make expansion sensible for the company in the long-run. The California-based EV-maker may start producing outside the US later this decade, possibly in Europe and Asia. A new North American plant is also possible.
In a 3-5 years’ timeframe, Mr. Musk said, “it’s going to make sense for us to think about localizing production in different markets; having a factory in Asia, a factory in Europe [and] other factories in North America. So in order to go beyond the 500,000 units a year, that’s what we need to do.”
Speaking of expansion plans, the company will continue expanding its Supercharger network in North America next year. The above image shows the company’s planned Supercharger network in North America for 2016.