U.S.
Tesla CEO Elon Musk says the company's vehicle sales should grow 20 per cent to 30 per cent in the coming year. The reassurance is that the company was showing a commitment to its key electric vehicle (EV) business — improving profitability — and allay concerns about its robotaxi timetable. Tesla's shares rose by 12% in after-hours trading, after the news, which would give it an extra USD 80 billion in market value.
Musk also pointed to its cost of production falling and said Tesla was concentrating on high profit margins, but would not antagonise opposition to autonomous vehicles. As much as it didn't impress the market the robotaxi's unveiling on October 10 did not impress the market, Musk remained confident. Still, even that was due to the outlier status of Tesla's profitability in a difficult automotive world, he said during a conference call, adding: 'No EV company is even profitable'.
Shares of Rivian and Lucid also rose 2 percent late Thursday after Tesla's news. Despite a regulatory deadline looming for driverless rides approved in California and Texas, Musk said Tesla plans to launch the driverless vehicles for 'paid services' next year. After Tesla offered a month of free FSD access to customers for the second time this year, he noted a large uptick in adoption and sales of Tesla’s Full Self Driving software, saying attendance in the robotaxi part of the event went up significantly.
However, Tesla reiterated Thursday that it is putting its main effort into bolstering its vehicle lineup and spending money on artificial intelligence and facility strength, while competitors reduce EV investments due to uncertain demand. The company also said plans to release new, cheaper models next year in the first half of 2025.
With a clear strategy in place, Tesla is already growing, and is still poised to continue growing, showing once again that it is a leader in the electric vehicle market and what it means to become one.