On Tesla’s earnings call Wednesday, Elon Musk made one of his patented pie-in-the-sky predictions that typically sends his fans into paroxysms of ecstasy: 5 million vehicle deliveries by 2030.

“We were aiming for 5 million vehicles a year by approximately 2030,” he said. “And I think we’ve got a good shot of achieving that goal.”

You’d be forgiven for missing the statement amid the veritable firehose of Musk superlatives — the company’s Terafab chip factory “will be the most valuable building in the world” with “an economic value that’s going to be placed in the top 20 countries” and “Tesla will end up being a majority of all passenger miles on Earth in any country where it is allowed to operate freely” — but nevertheless it’s an important one to clock. For one, it’s an example of Musk quietly downgrading his own projections, considering he said in 2020 that Tesla would sell 20 million cars annually by 2030. And also because I think this one in particular is going to come back and bite him in the ass.

Musk’s goal to hit 5 million vehicles sold annually by 2030 would require a complete reinvention of Tesla’s business model, and not in the way he is currently trying to rewrite the company’s mission. After back-to-back delivery declines — falling from a peak of 1.81 million in 2023 to 1.64 million in 2025 — the company would need to sell a shit ton of vehicles to meet that goal. And it neither has the right vehicles nor enough factory space to do so.

But this is Tesla we’re talking about, the company that traffics in the impossible. Could Musk pull it off? Well, that depends. Do you think the company will actually sell its flying Roadster to customers? If so, then yes, Tesla can probably do it. After all, Elon would never lie to you, would he? But if you’re one of those people who think the Roadster was a cool demo but an absurdly unrealistic consumer product, then read on.

First, let’s take a look at Tesla’s annual delivery numbers.

Sales volume peaked in 2023, and since then has dropped for two years in a row. So far this year, Tesla has sold 1,324,681 vehicles, meaning it would need to sell 311,448 vehicles in the fourth quarter just to avoid a third straight year of declines. That seems eminently doable, especially given Tesla’s habit of offering aggressive deals toward the end of the year as a way to clear out inventory and boost those final numbers. In all likelihood, Tesla will sell enough vehicles in Q4 to give it a nice bump over its annus horribilis of 2025. (Analysts are predicting 1.82 million for the full year, which would be the company’s best so far.)

So, to explore how Tesla can get to 5 million by 2030, we need to take into account something called compound annual growth rate, or CAGR. This is the percentage by which sales would need to grow every single year to get from where it is now to where Musk wants it to be. You calculate it by taking your target value (5 million) and dividing it by your starting value (1,636,129) to find the overall factor by which Tesla’s sales would need to grow. So the company faces a daunting 25 percent CAGR to get to Musk’s stated goal of 5 million cars sold annually by 2030.

Musk would argue this is achievable given Tesla’s current transformation from electric vehicle manufacturer to global leader in AI and robotics. A key pillar in this strategy is the Cybercab and the company’s Robotaxi fleet. If the company is able to successfully launch unsupervised Full Self-Driving in the second quarter of 2027 — which Tesla’s VP for Autonomy Ashok Elluswamy claimed during the earnings call — then demand for Tesla’s vehicles arguably would skyrocket. Moreover, VP for Vehicle Engineering Lars Moravy said that Tesla would try to deliver the first steering-wheel- and pedal-less Cybercabs to customers (likely fleet owners) before the end of the year. If Tesla can create an entirely new sales channel by selling Cybercabs to fleet owners, rather than relying solely on individual retail buyers, then perhaps 5 million cars isn’t so much of a reach.

And yet! A closer look at Tesla’s current product lineup reveals some structural deficiencies. Over 96 percent of the company’s sales depend on just two vehicles: the Model 3 and Model Y. Tesla discontinued the Model S and Model X earlier this year to make room at its plant in Fremont, California, for the production of its humanoid robot. The Cybertruck has been a sales flop, missing its initial targets by a wide margin. The Roadster may fly, but the hypercar is a nothingburger with regards to Tesla’s automotive business. (Musk himself admitted the Roadster was a “small potato” project that won’t move the needle financially.)

That leaves the Cybercab and the Semi. The latter represents a significant piece of the puzzle. As Tesla ramps up Semi production at its Nevada factory, selling large electric trucks to commercial delivery fleets could give the company a profitable way to ship tens of thousands more heavy vehicles each year, expanding its business beyond consumer cars. But it’s clear from Musk’s statements that he thinks Tesla’s best hope rests with the Cybercab.

The chips are stacked against the gilded two-seater. Before Tesla can sell or operate thousands of fully driverless cars on public roads, governments around the world have to adapt to the new technology. Getting government approval takes time and varies state by state and country by country. And Tesla is not the most persuasive company when it comes to creating new rules. Federal regulators are already scrutinizing whether the company skirted the law by rolling out the Cybercab in Austin, Texas. If regulators drag their feet, or if the technology isn’t 100 percent reliable in every city, companies won’t buy Cybercabs in bulk. Instead of selling millions of autonomous taxis to commercial fleets by 2030, Tesla would be left trying to sell traditional cars to individual buyers.

But Musk is such a true believer that he abandoned plans for a $25,000 mass-market EV (the so-called “Model 2”) in favor of going all in on the Cybercab. In doing so, he allowed the rest of the world — but especially China — to beat Tesla to the punch. Now we’re seeing Tesla’s market share in Europe and Asia being eroded by affordable models from BYD, Geely, and Xiaomi.

Also, Tesla is running headlong into a big factory problem. The company’s current factories can build only around 2.5 million to 3 million vehicles a year. To reach 5 million, Tesla would have to roughly double its factory space or build up to three new Gigafactories, which would take years and require massive spending, new supply chains, and a huge increase in battery production.

While Tesla remains a global force, reaching 5 million vehicles without a cheap electric car or regulatory-approved robotaxi network requires a rate of growth that seems utterly divorced from reality. Musk puts on a great show, but when it comes to delivering on his gigantic promises, he often leaves his audience scratching their heads.