
Tesla has pulled back from its goal of producing 20 million vehicles a year by 2030, another sign that the company is moving away from electric cars and shifting its focus to robotaxis.
Chief Executive Elon Musk had said in 2020 that Tesla aspired to sell 20 million vehicles by the end of the current decade, twice as many as sold by Toyota, the world's largest automaker. It had reiterated this aim in its 2021 and 2022 impact reports.
But the company changed tack recently, abandoning plans to produce an all-new model that was expected to cost $25,000, promoting autonomous driving technology as the main source of growth. She plans to host an event about robotaxis on August 8.
Musk said in April that Tesla plans to continue launching new models, including affordable cars, through the end of this year. But Tesla said it plans to use current product lines for affordable new vehicles instead of new facilities, making a strategic shift that would result in smaller-than-expected cost reductions and modest volume growth.
Slowing growth in demand for electric cars and stiff competition have hit demand for Tesla's vehicles. Its sales rose 38% in 2023, below its long-term target of 50% annual growth, and the company warned in January that shipment growth would be significantly lower this year. Tesla recorded its first annual sales decline in nearly four years during the January-March period of this year.
In an effort to restructure, Tesla laid off over 10% of its staff this year, including disbanding the Supercharger team. The 2023 Impact Report also showed that Tesla's fast charging network had an uptime of 99.97%, the highest in at least five years. However, some analysts and former employees have warned that the division's performance could suffer due to the layoffs.