Tesla Reaches 10 Millionth Vehicle Milestone Amid Stalled EV Growth

Tesla announced this week that it has built its 10 millionth vehicle, reaching the milestone at its Fremont Factory. According to Electrek, no other automaker has produced 10 million all-electric cars. The Fremont Factory made Tesla's 1 millionth vehicle just six years ago.

While the milestone marks a significant achievement for all-electric vehicle manufacturing, Electrek reports that the milestone has arrived later than Tesla previously targeted, as the company faces a period of stalled growth and unutilized factory capacity.

Deliveries and Growth Targets

For years, Tesla guided investors toward an average annual growth target of roughly 50% in production and deliveries, a target repeated by Elon Musk during shareholder calls. However, Tesla's annual deliveries peaked at 1.81 million in 2023.

Electrek notes that Tesla experienced its first annual delivery decline in 2024, dropping to approximately 1.79 million vehicles. Deliveries dropped again in 2025 by 9% year over year to 1,636,129 units, marking two consecutive years of decline. Data from 2026 shows little turnaround so far. In Q2 2026, Tesla produced 451,758 vehicles and delivered 480,126 units, putting the automaker on pace for roughly 1.8 million vehicles this year.

In its first-quarter 2024 shareholder update, Tesla attributed delays to being "currently between two major growth waves." The first wave relied on the Model 3 and Model Y, which launched in 2017 and 2020 respectively, while the second wave was expected to feature a cheaper next-generation vehicle. Electrek points out that over two years since that update, the second growth wave has not materialized.

Manufacturing Capacity vs. Actual Production

Tesla's official figures indicate an installed annual manufacturing capacity exceeding 2.375 million vehicles across its active production lines:

• Shanghai: Over 950,000 units
• Fremont: More than 550,000 units
• Berlin: Over 375,000 units
• Texas: 250,000 Model Y, 125,000 Cybertruck, and 125,000 Cybercab units

Comparing this capacity to current delivery figures, Tesla delivered 1.636 million vehicles in 2025 despite having plant capacity for well over 2 million. Based on Q2 2026 rates, Tesla is operating more than half a million units short of its claimed annual manufacturing capacity, indicating that the automaker is demand-constrained rather than supply-constrained.

Vehicle Lineup and Strategic Shift

Electrek reports that while the Model 3 and Model Y remain the two best-selling EVs globally, Tesla's wider lineup faces challenges. The Cybertruck has flopped, while the Cybercab and Semi are currently ramping up production. Meanwhile, the Tesla Roadster remains in "design development," where it has stayed for years.

At the same time, Tesla has shifted focus toward robotaxis and the Optimus robotics platform. Electrek reports that Tesla's robotaxi fleet is currently shrinking rather than growing, while Optimus timelines continue to slip. Neither initiative has generated additional vehicle sales.

While 10 million all-electric vehicles represents an unprecedented landmark for EV manufacturing, Electrek highlights that two straight years of declining deliveries and hundreds of thousands of units of excess factory capacity demonstrate that Tesla's core EV growth story has flatlined.