Tesla is no stranger to the general complications that overwhelm the world economy.
This is why, despite having posted record revenues in the last fiscal quarter, drastically lowered their expectations growth by 2022.
However, Tesla co-founder and chairman Elon Musk has dismissed concerns about a drop in demand amid global warnings of a recession.
Musk was blunt: “At Tesla we hope to sell all the cars that we will make in the future as far as we can see.”
Much of the explanation for the increase in Tesla’s income is linked to the increase in prices. This caused the brand to generate 3,280 million dollars in quarterly profits between July and September, above the expectations of the analysts surveyed by FactSet.
That value is just shy of the company’s record quarterly profit ($3.3 billion) from the first quarter of 2022.
Revenue for the quarter was $21.54 billion, the highest in its history for a quarter, well above the $13.81 billion in the same quarter of 2021.
Likewise, they were below Wall Street forecasts.
Tesla said that this difference was caused by the increase in the dollar (Tesla sells a good part of its vehicles in markets other than the United States), by the higher costs of raw materials and logistics, and by logistics problems related to the commissioning of the plants in Texas and Germany.
Regarding what Tesla expects for 2022, Musk lowered the target. The leading brand in the sale of electric cars now expects to sell 50 percent more than in 2021.
Tesla sold 935 thousand units in 2021 and it would need to sell 1.49 million this year to achieve the original target of 60 percent growth, something it now does not expect to achieve.
The goal now is 1.4 millionto grow 50 percent compared to 2021.
Likewise, Musk said that Tesla is “recession resistant” that will advance to the bottom, “rain or shine, recession or no”.
Beyond these numbers, the truth is that Tesla’s share price is down 36 percent so far this year, more than the 32 percent drop on the tech-heavy Nasdaq Composite.
This was influenced by problems with inflation and logistics, but also Musk’s search to buy Twitter, after not doing so and, finally, returning to the fray to take over the social network.
This Thursday, October 20, before the opening of the markets, Tesla shares fell 5.5 percent.
Musk, Tesla’s largest shareholder, sold more than $15 billion worth of Tesla stock in 2022, suggesting at least some of those proceeds will be used to fund his $44 billion deal to acquire Twitter.
Some investors are concerned about this because they understand that you will need to sell more to close the transaction.
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