DUBLIN, May 6, 2016 /PRNewswire/ --
Tesla aims to build a total of 500,000 electric vehicles by 2018, which is two years ahead of its original schedule, according to a report from Reuters. The company is stepping up production plans for its Model 3 and is on track to deliver up to 90,000 vehicles this year. However, capital spending will also rise 50% higher than previously forecast, to an estimated $2.25 billion.
Musk says Tesla is aiming to become a high-volume manufacturer within a couple of years. It has set a 2020 volume target of close to 1 million vehicles. However, its 500,000 target for 2018 is still a fraction of what traditional automakers produce annually. Tesla has become one of the leading names in EV production, with its Model 3 unveiling generating massive interest. A recent report published on Research and Markets expects Tesla to achieve 25% gross profitability by 2020 and says it poses a challenge to the conventional automotive market.
The electric vehicle market is expected to reach a massive value of $342.50 billion by 2022. The market for EV charging stations is also forecast to grow at an impressive rate of 29.8% during this period to reach $12.61 billion. These markets are being driven by government subsidies and incentives, and a growing need to reduce carbon emissions.
The Asia-Pacific region will account for the largest share of the market. According to a report on the strategic outlook for electric vehicles, China will emerge as the market leader in 2016 with a 47% share. It is focusing on increasing the growth of plug in hybrid and electric vehicles by not only availing cash incentives and subsidies, but also by subsidizing the maintenance and construction of electric vehicle charging infrastructure.
Before announcing the new target, Tesla did reveal that two of its top manufacturing executives will be leaving the company.
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SOURCE Research and Markets