To correctly instance:
- Add an instanced static mesh component
- Pick your base mesh and material (they can’t change).
- Click the + to add an instance.
- Set the instance transform
- Repeat
For 50,000 instances, you may want to generate them in a loop of some sort. It should be able to handle 50,000 meshes as long as your PC can run the triangles. You will not be limited by draw calls because the mesh and material are instanced. I’ve run around 20,000 trees before with minimal frame-rate hit and I know they had quite a few triangles up close (I was using hierarchical instanced static mesh components).