A Milestone Is Reached By Tesla Production in China

Tesla (TSLA) CEO Elon Musk said that the electric-vehicle manufacturer has now manufactured 3 million vehicles, with about one-third coming from its gigafactory in Shanghai.

Musk tweeted on Sunday, "Congrats, Giga Shanghai, on manufacturing the millionth car! "Total Tesla is currently over 3 million."

In premarket trade Monday, Tesla's (TSLA) shares were down 0.5% at $895.45. Futures for the S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) both declined roughly 0.5%.

The figure comes as no surprise. Musk stated the three-million-dollar amount during the company's annual shareholder meeting in early August. The figure is also retrograde. These are two of the reasons why the news hasn't boosted the stock.

Still, that's a lot of vehicles. Tesla began selling less than 2,000 units in 2010. That equates to around 12 years of sales. According to Wall Street forecasts, Tesla should produce its next 3 million automobiles within the next two years.

Furthermore, Tesla produced 3 million units from virtually two plants. One is in Fremont, California, while the other is in Shanghai, China. Tesla began exporting automobiles from Shanghai around the beginning of 2020. It took less than two years for the factory to ship one million units. It took nearly ten years for the Fremont facility to transport the same quantity. Of course, Tesla introduced new, lower-priced versions, starting with the Model 3 in 2017.

Tesla is also building two additional factories in Texas and Germany. Musk stated that the business expects to produce around 2 million cars per year by the end of 2022.

The announcement of the China milestone came as new statistics revealed that China's economic recovery slowed in July as a result of Beijing's strict lockdown policies to control Covid-19 outbreaks. In an effort to jump-start the economy, its central bank unexpectedly cut a key interest rate.

EV sales may require a boost. On Monday, Chinese EV manufacturer Li Auto (LI) released its second-quarter results. The statistics were OK, but the direction was not. In the third quarter, the business aims to export around 28,000 automobiles. Analysts predicted around 39,000. In premarket trade, Li stock dropped more than 6%.

The new unofficial update from Musk comes as second-quarter statistics showed Tesla rebounded from its epidemic lows, delivering 254,695 electric vehicles in the period, with June being its biggest production month ever.