First off, a little bit of historical perspective on Tesla’s growth is in order. Tesla plans to make 500,000 cars in 2020, five years from now. Last year Tesla made perhaps 33,000 cars. We will find out exactly how many when they report earnings later this month. Not only is Tesla telling us they will grow their production by 15 times, they also claim they will reduce the price of their electric cars by half – all within the next five years. To reduce costs, and to obtain massive quantities of batteries, Tesla is building a very large Nevada battery factory.
While growth rates in automobile manufacturing such as Tesla is planning are unheard of today, just over a century ago, Henry Ford achieved almost precisely what Tesla seeks to achieve today. In 1911, Ford built 34,858 Model T automobiles. Five years later, in 1916, Model T production was 501,462