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A bullish comment from Elon Musk during the company’s Q4 earnings boost helped Tesla (NASDAQ: TSLA) shares are increasing significantly on Wednesday.
During the presentation, Musk presented his views on the US economy, its availability on social media, Tesla’s (TSLA) role as an AI company, autonomous driving, and the developer’s impact on the insurance industry. However, his most emotional statements were related to production and sales for the year.
To begin the presentation, Musk immediately downplayed concerns about lower prices, noting that lower prices have led to unprecedented orders.
“So far in January we’ve seen the strongest schedule ever in our history,” he said. “Right now we’re seeing orders almost double the amount of production.”
CFO Zachary Kirkhorn added that the drop in prices in the US was driven by tax regulations, not complaints. Musk later added that the company may have the option of “minimum price increases” later in the year based on strong demand.
On production, Musk said the goal of producing 1.8M vehicles is sustainable. According to Mr. Musk, internal estimates confirm a 2023 volume of approximately 2M vehicles.
“We cannot control if there are earthquakes, tsunamis, wars, epidemics, etc. If it is a smooth year, without major disruptions or major problems, we have a chance to do 2M cars this year,” said experts. “I think there needs to be.”
Musk also gave an update on Cybertruck production, which is predicted to begin this summer. However, he warned that “volume production” may not happen until 2024.
While shares only managed to gain modestly in the run-up to the call, stocks rallied sharply 5% benefit by completing the comments. Shares of Tesla (TSLA) soared 5.34% starting at 7:45 PM ET.
Read more about the earnings report.
