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Elon Musk Foresees Tesla Making Millions of Cars by 2025

Motor Trend logo Motor Trend 1/16/2015 Megan Stewart
Elon Musk Foresees Tesla Making Millions of Cars by 2025

This week Tesla CEO Elon Musk announced his intentions to produce millions of cars by 2025. Production on that scale would make Tesla about the size BMW is today, the Detroit Free Press reports.

Looking at current production numbers, the electric automaker only made around 33,000 units in 2014. While Musk projects sales to increase by 50 percent this year, Tesla will have to not only establish dealers in the states where it's blocked from selling directly to customers, but also increase production and add new models.

For the first time in two years, Musk appeared at the 2015 Detroit auto show where other automakers were introducing their versions of plug-in models. However, Musk doesn't feel these cars, including the new Chevrolet Bolt , are a threat.

2014 Tesla Model S© Provided by MotorTrend 2014 Tesla Model S

"I think that's great. I hope to see a lot more of that. I don't see it as a competitive threat because I think all cars will go electric," said Musk in an interview.

But Tesla isn't sitting idly by. Just as GM plans to produce the Chevrolet Bolt, the electric automaker is expected to produce an affordable electric car by 2017. Known as the Model 3, this entry-level Tesla will go up against the likes of the BMW 3 Series and Mercedes-Benz C-Class. We can expect to see it after the launch of the Model X SUV that is expected to happen later this year.

Musk also said that more assembly plants will be needed once Tesla reaches 500,000 sales a year. The automaker currently produces vehicles at its Fremont, Calif. plant, and plans to add another plant in China. A Gigafactory facility in Nevada will produce battery packs for Tesla and other automakers, reducing the cost of the now expensive components by at least 30 percent. When asked if a plant in Detroit was a possibility, Musk told the Detroit Free Press : "It's not out of the question. Maybe Michigan shouldn't stop us from selling cars here. That would be a nice gesture."

But new models and increased production may not be enough to bring buyers to the electric automaker, as Musk worries about the effects of fracking. This drilling practice, which injects high-pressure water deep into the earth to fracture rocks and reach oil deposits, has helped drop gas prices globally, giving buyers less incentive to go electric.

Perhaps some of the biggest news coming from Musk at the auto show was his plan to eventually build franchised dealerships. But before that happens, Musk commented that the company must "establish a solid base with our own stores," and deliver "an awesome experience" to its customers.

Source: Detroit Free Press

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