Tesla made its 10 millionth EV
Tesla says it has produced its 10 millionth electric vehicle, reaching the milestone six years after making its first million. The achievement is significant because it puts the company halfway towards the 20 million vehicles required by 2035 for Elon Musk to receive the full value of his shareholder-approved pay package.
Tesla has yet to sell two million vehicles in any single year, and its US sales fell 13% year-on-year in the second quarter, making the 20 million target challenging if growth remains slow. The wider package also depends on targets for Full Self-Driving subscriptions, robots, robotaxis and adjusted EBITDA; Tesla reported nearly 1.5 million FSD subscribers and about $3.27 billion in adjusted EBITDA, while BYD has exceeded 17 million new-energy vehicles, roughly half hybrids.
- Tesla has built its 10 millionth electric vehicle.
- It is halfway to a key 2035 production target.
- Slowing sales could make the target difficult.
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Tesla is an electric vehicle manufacturer founded by Elon Musk, who remains the company's chief executive. Shareholders approved a compensation package for Musk that is tied to the company achieving specific growth milestones rather than being paid a fixed salary.
The most significant milestone for Musk's compensation is that Tesla must reach 20 million vehicle sales by 2035. This target matters to investors because it indicates whether Tesla can achieve expected growth and maintain its position in the global electric vehicle market.
Tesla has not yet sold two million vehicles in a single year, despite being a major player in the electric vehicle market. The company faces increased competition from traditional automakers entering the electric vehicle space and from Chinese manufacturers, making the 2035 target ambitious and dependent on sustained growth.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Reaching 10 million vehicles in six years shows Tesla has built substantial manufacturing capacity and could support the case that its ambitious targets are achievable with continued growth. Linking Musk’s compensation to further production and other business milestones may reward him only if the company delivers significant value for shareholders.
The case against
The milestone leaves Tesla needing another 10 million vehicles by 2035, despite never having sold two million in a year and recently reporting falling US sales. Critics could argue that the target depends on unusually rapid growth and that tying a large pay package to production and other measures risks rewarding headline milestones without ensuring durable value for shareholders.