Musk expects Tesla’s Cybertruck to be mass-produced in 2024

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Phoenix.com Technology News, January 26, Beijing time, Tesla CEO Elon Musk (Elon Musk) said on Wednesday that the company’s aggressive price cuts have triggered a wave of demand for its electric vehicles. The comments allayed concerns that a weak economy would dampen buyer interest.

Tesla reported fourth-quarter revenue and profit earlier on Wednesday that topped Wall Street expectations despite a sharp decline in profit margins in its auto business. The company is trying to reassure investors that it can cut costs and continue generating cash amid heightened competition in the year ahead.

This month’s steep price cuts have made Tesla the instigator of the price war, but the company forecasts vehicle sales to rise 37% this year to 1.8 million vehicles, slower than growth in 2022. Tesla’s sales outlook is in focus for investors amid a weakening global economy. The company’s long-term goal is to achieve a compound annual sales growth rate of 50%.

Musk addressed the issue at the start of a conference call with investors and analysts. “These price adjustments do have an impact on the average consumer,” he said. Demand was roughly double production in January, he added. Tesla could sell 2 million vehicles in 2023 if there is no external interference. In 2022, Tesla will deliver 1.31 million vehicles.

Musk: Price cuts have greatly stimulated demand 2023 sales may reach 2 million Tesla acknowledged concerns about economic uncertainty and said it will “accelerate our cost reduction roadmap and drive higher production rates” in the short term .

Tesla CFO Zach Kirkhorn said the price cuts would dent profitability, but margins should improve as the company lowers costs.

As of Wednesday’s close, Tesla shares rose 0.38%. Shares of Tesla rose 4.3% after hours after the earnings report was released. (Author/Xiao Yu)

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