Tesla CEO Elon Musk said on Tuesday that his company plans to increase its electric car production to a "few million a year" by 2025.
Musk proclaimed his fearless forecast while speaking at the Automotive News World Congress in Detroit. Hearing him talk about getting "a few million" cars on the road was unexpected, but even with declining gas prices,Tesla's vehicles are in high demand. Tesla's model S luxury vehicle is sold out for 2015, and the company needs more hands and space for production, USA Today reported.
Tesla is also on track in releasing its sports-utility vehicle Model X this summer, the Model 3 by 2017 and the self-driving car by 2020. Musk said that he hopes the lower cost of the Model 3, which could sell for about $30,000, will boost the company's annual sales to reach 500,000 vehicles sold per year by 2020, according to Reuters.
Aside from the new model release, Musk announced that Tesla is open to partnering with retailers to sell its cars after the production issue in Fremont, California is resolved, although he still prefers direct selling. Musk said that he is thinking of building production plants in other U.S. states, Europe and Asia to increase productivity, Detroit News reported.
He also admitted that the company will not be lucrative until 2020, but clarified that profitability is not his main focus for now, as he wants to invest more in new technology and expansion. Sales in China failed to meet the target for the last quarter of 2014, and Musk believes that residents may have had trouble charging their vehicles.
"We'll fix the China issue and be in pretty good shape probably in the middle of the year," he said.
When asked to comment on GM's plan to produce a $30,000 electric car by 2017 to compete with Tesla's Model 3, Musk said he is welcoming the competition and glad that GM is becoming innovative.
"I'd be pleased to see other manufacturers make electric cars," he said.
