Tesla to double its EV production in US by 2027, Elon Musk reiterates OEM's target

Is Tesla running out of charge? Once a beacon of innovation, now on the brink of fall. This is the vibe making headlines around the world in the global automotive community. The US-based electric car manufacturer has witnessed the worst fall in its stock valuation in the last five years. However, the Tesla stock is finally showing signs of resurrection. Fuelling that turnaround is the announcement of Tesla CEO Elon Musk, who said that the company is targeting to double its US production in the next two years. However, the company is yet to disclose its strategy for reaching the ambitious new target. Also, this announcement has brought scepticism as well, considering the history of Musk not delivering up to his promises with Tesla vehicles.

While this announcement is not surprising for many as the Tesla CEO previously also said the same, this time it is a tad bit different. Musk's latest announcement about supercharging the Tesla EV production volume by 2027 comes on the heels of US President Donald Trump's backing of the EV manufacturer.

Trump voiced his support for his biggest political donor after Musk’s net worth plunged to $23 billion. He even said that he wants to buy a Tesla electric car. “I said that I want to buy a Tesla and we just went to the front. He (DOGE Head and Tesla CEO, Elon Musk) had four beautiful cars there, and I bought one in front of the press. It was a very public purchase, and they’re beautiful and do a great job," the US President stated.

Showing solidarity to the moves of the Trump administration to bolster auto manufacturing in the US, Musk said that Tesla is going to double vehicle output in the United States within the next two years. The carmaker showcased four Tesla EVs in front of the White House, allowing Trump to choose his new electric ride. “As a function of the great policies of President Trump and his administration, and as an act of faith in America, Tesla is going to double vehicle output in the United States within the next two years," Musk said during the event. This announcement came as a shot in the arm for the Tesla stocks that were ailing a few weeks back.

Tesla’s production capacity in the US

Tesla currently has a production output of around 1.1 million (11 lakh) vehicles per annum. The company currently rolls out a smaller number of vehicles than the OEM's actual installed capacity. Tesla manufactured around 50,000 units of its Model S and Model X electric cars, while the production capacity is double that in Fremont, California. The Model 3 and Model Y, two of the company's bestselling electric cars globally, are produced around 600,000 units yearly, but the plants can roll out more than 800,000 units. The Tesla Cybertruck has been a big disappointment for the auto company as the OEM initially aimed to churn out 125,000 units of this pickup truck annually, but managed to roll out less than 50,000 units.

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