Tesla setting up to overtake Toyota as the world’s largest carmaker

Tesla is preparing to boost production, with CEO Elon Musk telling shareholders the electric vehicle company is aiming for 20 million new cars annually.

The Tesla boss said the 'run rate' – the average production number from each factory – is set to increase to two million cars each year, up from one to 1.5 million currently, according to Automotive News Europe.

The new target means at least ten of the company's ‘Gigafactories’ will need to be operated, which when boosted to an average of two million electric vehicles, would equate to a total annual production of 20 million new cars.

The world’s biggest car company, Toyota, sold about 10.5 million new cars in 2021, with Volkswagen Group coming in second with 9.3 million reported sales.

Tesla reported a total of 936,000 vehicles produced in 2021.

Musk said the company’s two newest plants, located in Germany and Texas, were working through solving “10,000” small problems, despite both enjoying a run rate of 1.5 million cars.

“If all goes as planned, we will be exiting 2022 at a two million annual run rate.”

The key to Tesla’s long-term profitability is in its manufacturing, Musk told shareholders, with the carmaker revolutionising production processes with its ‘Giga Press’, which replaces hundreds of welded steel parts by creating one large aluminium piece.