Tesla reaches 10 million electric vehicles produced at Fremont plant

Tesla has produced its 10 million electric vehicles at its Fremont factory in California, becoming the first company focused exclusively on battery electric vehicles to reach the eight-digit production milestone. The achievement comes six years after the plant built its first millionth vehicle in 2020.

The milestone vehicle was a black Model Y, according to Investor’s Business Daily. Tesla shares rose on Thursday as investors reacted to the announcement while the company attempted to end a six-session losing streak following its latest financial results.

The production record also moves Tesla closer to one of the performance targets included in CEO Elon Musk’s long-term compensation package, which shareholders approved last year. Under the plan, the company aims to manufacture 20 million vehicles by 2035 while also reaching 10 million active Full Self-Driving subscriptions, deploying one million robotaxis and delivering one million humanoid robots.

Despite years of rapid expansion driven by the Model 3 and Model Y, Tesla has never sold more than two million vehicles in a single year. At its current production pace, the company is unlikely to reach 20 million cumulative vehicles until the early 2030s.

Tesla’s production milestone arrives during a period of slowing sales. After delivering a record 1.81 million vehicles in 2023, annual deliveries declined to about 1.79 million in 2024 and 1.64 million in 2025. During the second quarter of 2026, U.S. sales fell 13 percent year over year, increasing pressure on the automaker to expand demand in markets such as Japan, Australia and Lithuania.

According to Electrek, Tesla’s installed manufacturing capacity now exceeds 2.375 million vehicles annually. However, the company is expected to build around 1.8 million vehicles this year, leaving more than half a million units of unused capacity. Analysts point to weak demand rather than production limitations, with Tesla’s core lineup remaining largely unchanged since the Model Y debuted in 2020.

Competition in the global electric vehicle market continues to intensify. Chinese automaker BYD recently surpassed 17 million new energy vehicles produced and sold, although roughly half of those vehicles are plug-in hybrids rather than fully electric models. In the United States, several established automakers have scaled back electric vehicle investment plans, while startups including Rivian and Lucid Motors continue to face challenges increasing production.

Tesla recently introduced the long-wheelbase Model Y L in the United States and is reportedly developing a smaller, more affordable electric vehicle, although the company has not officially confirmed those plans. The second quarter also brought some positive signs, with global deliveries increasing 25 percent year over year as higher fuel prices supported electric vehicle demand across Europe.

Electrek editor Fred Lambert described the production achievement as a significant accomplishment for Tesla while noting that the milestone also highlights the company’s slowing momentum in its core electric vehicle business.