Tesla CEO says demand outpaces production, cites Full Self-Driving as key driver

Tesla chief executive Elon Musk told investors that demand for the automaker’s vehicles is surpassing its current production capacity, highlighting Full Self-Driving (FSD) as the primary catalyst. He said the company is scaling up output to meet the gap.

"Demand is growing rapidly for our vehicles. It's exceeding our production by a significant margin," Musk said.

"The biggest driver for demand is full self-driving, and today there's really no competitor for FSD in any car that you can buy."

Tesla reported third-quarter revenue of $28.05 billion and delivered 486,532 vehicles. Musk added that the results could mark the start of a period of stronger growth after years of relatively flat expansion.

"In a nutshell, after many years of sort of grind and things being fairly flat, I think we're now headed for a lot of fun and significant growth."

The company aims to increase annual production to about 5 million vehicles by 2030. As part of its expansion, Tesla plans to roll out its Cybercab ride-hailing service in Dallas next month, with deliveries expected by the end of 2026, primarily for fleet use rather than private ownership.

"Cybercab is primarily going to be something that is offered as, like, transport as a service."

Chief financial officer Vaibhav Taneja said Tesla raised its 2026 capital-expenditure outlook to roughly $20 billion, ending the quarter with more than $1.5 billion in free cash flow and over $45 billion in cash and investments.

Musk also noted that Tesla is seeking European Union approval for FSD, hoping for a region-wide clearance within months.

"We're hoping for an EU-wide approval. It's hard to predict, but maybe, you know, within a few months."

Earlier in the week, Musk mentioned that a merger between Tesla and SpaceX was under review by special committees of independent directors, describing the idea as potentially beneficial.