Tesla wanted to make 20 million cars a year by 2030.

Tesla wanted to make 20 million cars a year by 2030.

Tesla Model 3 Elon Musk

Tesla is having a right old time of it right now. If it’s not recalls over shoddy building of its flagship Cybertruck then its mass layoffs and declining sales. Now, the cost of those sales drops is becoming clear, as Tesla has reportedly cut production of some models and dropped one of its most ambitious targets.

The electric vehicle manufacturer reportedly slashed production of its Model Y electric SUV in Shanghai, reports Reuters. New data shows that the EV maker has cut output of its best-selling model by a “double-digit percent” from its Chinese factory. As Reuters explains:

The move is aimed at addressing weakening demand for the U.S. automaker’s aged model in China, its second largest market into which a majority of the cars produced at the Shanghai plant are sold and where a brutal price war has erupted among electric vehicle makers amid an economic slowdown.

The Shanghai plant, Tesla’s biggest manufacturing hub globally, planned to cut Model Y output by at least 20% during the March to June period, said the person, who declined to be named as the matter is private.

Data from the China Association of Automobile Manufacturers (CAAM) showed the output of Model Y in China stood at 49,498 units in March and 36,610 in April, 17.7% and 33% lower, respectively, compared to a year ago.

Alongside the drop in production in China, Tesla has also dropped one of its most ambitious targets this week. For the past few years, Elon Musk has proudly claimed that by 2030, his company will ship more than 20 million cars annually —that’s more than Toyota manages today.

However, after making the claim in the 2021 and 2022 annual impact reports, the automaker dropped the wording in its latest edition, reports Bloomberg. As the site adds:

Tesla sold 1.8 million vehicles in 2023 and already has warned that it will grow at a “notably lower” rate this year. Musk vowed in April to launch less-expensive vehicles as soon as late 2024. However, people working with the CEO say he’s mostly been focused on launching a fully driverless car that Tesla plans to unveil on Aug. 8.

With a renewed focus on autonomous taxis over cheaper electric models for the masses, is the 20 million cars a year target now simply out of reach for Tesla?

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