Tesla to hit half a million car sales this year
That’s the word from Elon Musk on Twitter, despite the United States Securities and Exchange Commission previously slapping him with fines for promissory tweets.
Musk publicly stated on 19 February that Tesla would build 500,000 vehicles in 2019, which prompted the SEC to accuse the Tesla boss of being in contempt of the prior settlement. Repeating the message again this past weekend surely won’t help calm things with the authorities.
Very much so. There are 2.5B cars & trucks on Earth. Even replacing 1% of that fleet would require making 25M vehicles per year. Tesla will make over 500k cars in next 12 months, but that’s a mere 2% of 25M or 0.02% of global vehicle fleet. Car industry slow -> demand >> supply.— Elon Musk (@elonmusk) April 14, 2019
As a result, Musk’s lawyers and the SEC have been instructed by a judge to reach an agreement that will prevent Musk from tweeting whatever he wants by Thursday, April 18. If they can't reach an agreement by then, the judge will rule whether Musk's newest tweets are in contempt of the SEC settlement.
Meanwhile, Tesla still has a few roadblocks to navigate before it reaches its 500k promise. Last week, Panasonic pulled back on a series of upgrades and investments to Tesla's Nevada and Shanghai factories. These would have resulted in increased battery production, believed to be the Model 3’s ultimate production bottleneck.
Falling sales of the Model S and X could be one reason why Panasonic backed out of the upgrades, as more production capacity wouldn’t be needed if overall battery supply catches up with falling demand.