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Tesla Reaches 10 Million EV Production Milestone as Growth and Pay Package Goals Align

Tesla has officially produced its 10 millionth electric vehicle, reaching the milestone six years after manufacturing its one millionth car. The achievement places the company halfway toward a key manufacturing target tied to CEO Elon Musk’s shareholder-approved pay package.

What Happened

Tesla announced early on Thursday via a social media post that it had manufactured its 10 millionth electric vehicle. This milestone arrives six years after the company completed its one millionth vehicle. Rapid expansion in previous years was largely driven by the popularity of the Model 3 and Model Y. However, Tesla has not yet managed to sell two million vehicles in a single calendar year.

The company has also seen shifts in its market dynamics. While major United States automakers have scaled back their electric vehicle operations and startups such as Rivian and Lucid Motors have faced challenges reaching scale, Tesla continues to face difficulties in its domestic market. During the second quarter, Tesla’s U.S. sales dropped by 13% year-over-year. To compensate, the electric vehicle maker has sought buyers in newer international markets, including Japan, Australia, and Lithuania.

Key Highlights

  • Tesla reached the 10 million electric vehicle production mark six years after building its one millionth vehicle.
  • The 10 million milestone represents half of a 20-million vehicle production goal required by 2035 under Elon Musk’s pay package.
  • Tesla’s U.S. sales declined by 13% year-over-year in the second quarter, prompting expansion efforts in Japan, Australia, and Lithuania.
  • The company currently reports nearly 1.5 million Full Self-Driving (FSD) subscribers against a goal of 10 million active subscriptions by 2035.
  • Adjusted EBITDA stands near $3.27 billion, far short of the $400 billion target required by 2035.
  • China’s BYD has built and sold over 17 million new energy vehicles, though about half are hybrid models.

Why This Matters

Reaching 10 million vehicles built marks progress toward one of four core product goals specified in CEO Elon Musk’s $1 trillion pay package approved by shareholders last year. Under the package terms, Musk must meet four major product targets by 2035: building 20 million vehicles, securing 10 million active Full Self-Driving (FSD) software subscriptions, delivering one million bots, and placing one million robotaxis on the road.

Among these four goals, the 20 million vehicle target is the closest to completion. Tesla currently has slightly less than 1.5 million FSD subscribers, though it remains unconfirmed whether this figure includes free trials, which do not count toward the board’s official criteria. Meanwhile, Tesla is only in the early development phases for its robots and robotaxis.

Additionally, Musk’s compensation agreement mandates increasing Tesla’s adjusted EBITDA to $400 billion by 2035. Currently, adjusted EBITDA hovers around $3.27 billion and has recently declined due to heavy price discounts, reduced revenue from regulatory credits, and increased capital expenditures on artificial intelligence and robotics. In global competition, China’s BYD recently surpassed 17 million new energy vehicles produced and sold, though approximately half of BYD’s total consists of hybrid vehicles rather than pure electrics.

What to Watch Next

At its current manufacturing and sales pace, or if growth slows further, Tesla is projected to reach its 20 million vehicle milestone no earlier than the early 2030s. Elon Musk previously targeted manufacturing 20 million vehicles per year by 2030, a goal that was subsequently abandoned as vehicle sales growth slowed down. Moving forward, progress on active FSD subscriptions, robotaxi deployment, robot development, and profit expansion will determine progress toward the remaining performance conditions.

Frequently Asked Questions

When did Tesla manufacture its 10 millionth vehicle?

Tesla announced the milestone early on Thursday in a post on social media.

What are the product goals tied to Elon Musk’s pay package?

By 2035, Tesla must build 20 million vehicles, reach 10 million active Full Self-Driving subscribers, deliver 1 million bots, and operate 1 million robotaxis on the road.

How does Tesla compare to competing automakers?

In the U.S., major automakers have pulled back on EVs while EV startups like Rivian and Lucid struggle to scale. Globally, China’s BYD has produced over 17 million new energy vehicles, though around half are hybrids.

Source: Based on reporting from TechCrunch and official Tesla social media updates.