After cutting low-volume affordable models, Tesla cancels its grand plan to sell 20 million cars annually
The focus has shifted entirely to autonomous driving
In its latest impact report, Tesla has removed the previously set target of achieving annual sales of 20 million vehicles by 2030, which may be another signal of Elon Musk's focus on autonomous taxi services.
In 2020, Tesla CEO Elon Musk stated that the company aimed to achieve annual sales of 20 million vehicles by 2030, double the annual sales of the then-largest global automaker Toyota. This target also appeared in Tesla's 2021 and 2022 impact reports.
However, at the beginning of this year, Tesla's strategy shifted. According to media speculation, Musk has put aside plans to launch a $25,000 affordable new model and instead prioritized autonomous driving technology as a key driver of future growth. Tesla is planning to hold an autonomous taxi launch event on August 8.
NVIDIA CEO Jensen Huang praised Tesla's autonomous driving technology in a recent media interview:
Tesla is far ahead in autonomous driving cars. One day, every car must have autonomous driving capabilities... It is safer, more convenient, and more fun to drive.
So far this year, Tesla's stock price has fallen by nearly 30%. Slow growth in the electric vehicle market and intense competition have impacted demand for Tesla. In the first quarter of this year, Tesla saw a year-on-year decline in sales for the first time in four years. To cope with the pressure, Tesla has announced layoffs of over 10% and disbanded the team responsible for building the fast-charging station network.
Musk stated at an event on Thursday that autonomous taxis and humanoid robot Optimus will have a "profound impact" on Tesla, but he refused to answer questions about the affordable model.
Leverage Shares believes that Tesla's target of selling 20 million vehicles by 2030 was largely supported by the plan to introduce a $25,000 affordable model. While Tesla still officially promises to introduce "more affordable" models in the future, "more affordable" does not necessarily mean a $25,000 affordable model, indicating uncertainty in Tesla's product strategy compared to Nio.
Moreover, with Tesla voluntarily giving up this sales target, it is likely that the market will not see the $25,000 affordable model