Elon Musk tells Tesla shareholders there is "decent shot" at record quarter

Andrew Cummings
June 12, 2019

Tesla CEO Elon Musk is assuring the company's shareholders that the electric auto maker is on pace to set manufacturing and sales records during its current quarter after a disappointing start this year.

Musk, who has in the past made promises that have not panned out, also said it "won't be long before we have a 400-mile range vehicle".

The forecast made Tuesday at Tesla's annual meeting provided a ray of hope amid worries about the company's long-term prospects.

Demand is a core theme that analysts have for months said is a major issue for the automaker, leading firms up and down Wall Street to cut their earnings estimates, price targets, and investment ratings.

Musk said Tesla doesn't have a "demand problem".

Quite the opposite, says Musk, who at the end of May appealed to staff via email to do their bit to ramp up production to turn the company around from its previous quarter. "And 90% of orders are coming from nonreservation holders, so these are new customers". "We might get into the mining business".

Musk said the electric-car maker's ability to expand its product lineup depends on being able to produce a large number of batteries.

To do that, it will have to beat the $US312 million ($A448 million) profit Tesla reported for the third quarter of 2018, which was the company's first profitable quarter ever reported and notably included a 20% margin on its Model 3 alone. "I don't know", Musk said. Currently Tesla's Long Range Model S Sedan has the longest real world range of around 600km according to Australian publication, The Driven.

Other reports by iNewsToday