Tesla CEO Elon Musk Claims Demand Is Not Waning
【Summary】Despite recent reports stating that Tesla is struggling and that demand for the brand’s electric cars is dropping, CEO Elon Musk told investors that sales and production are still doing well.
Recent reports have painted a tumultuous time for Tesla. In May, outlets picked up an all-staff email that stated Tesla would be out of money within 10 months . For a tech-forward brand that has some of the most sought-after electric cars on the road, that's scary news. Apparently, those reports are bogus, as Tesla CEO Elon Musk told investors that the company's doing really well.
Tesla Still Has Demand For Its EVs
In a report, USA Today states that Musk set aside recent reports claiming demand for the automaker's electric cars is waning. At Tesla's annual meeting, Musk told investors that "sales have far exceeded production, and production has been pretty good," reports the outlet. "I want to be clear – there is not a demand problem. Absolutely not," said Musk.
Obviously, the statements come at an interesting time for the brand, as the staff-only email painted a grim picture and the automaker's first-quarter earning revealed a loss of over $700 million . The reason for the massive loss was due to slowing demand for the Model 3 and issues that Tesla had with delivering the affordable sedan to consumers.
But that, apparently, is only one part of the picture. A report by CNBC claims that May was a good month for Tesla, as registrations for Model 3 sedans increased. So perhaps things are better than outlets claim. Furthering on the reassurance to investors, Musk also took some time to reaffirm the company's goal of coming out with fully autonomous cars in 2020.
"I think it's basically financially insane to buy anything other than an electric car that's upgradeable to autonomy," said Musk.
What Else Is In The Pipeline?
Autonomous vehicles aren't the only thing Musk wants to come out with by 2020. The CEO also claimed that the Model Y would reach "volume production" by fall 2020. "Internally we're aiming for sooner than that but we want to have some margin on that timing," he said.
Then there's the electric pickup, which Musk hopes to have out in some form this summer. The truck has to meet all of Musk's insane expectations, as he recently said it would outperform a Ford F-150 and be sportier than a Porsche 911 while costing less than $50,000.
So, it's business as usual, according to Musk. And not only business, but good business. An issue the brand is likely to run into, though, is with getting raw materials for its electric vehicles. Supplies are expected to run dry soon, as multiple automakers are working on EVs. Musk, as always, has a solution for that, too.
"We might get into the mining business. Maybe," he said. "We'll do whatever we have to to ensure we can scale at the fastest way possible."
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
Ford to Use Seat Ventilation Fans From F-150 to Make Respirators
Automakers Finally Close Their North American Factories Over Coronavirus Concerns
IIHS Claims Advanced Driver-Assist Systems Need to Keep Drivers Focused on the Road More
Honda Kills the Clarity Electric, Its Only EV Available in the U.S.
Uber’s Self-Driving Cars Return to San Francisco
Tesla Looking for a Factory for Cybertruck Production
Mercedes-Benz Unveils eVito Electric Van With Over 200 Miles of Range
Fiat 500 Returns as Grown-Up, All-Electric City Car
- Fiat 500 Returns as Grown-Up, All-Electric City Car
- NHTSA to Investigate Deadly Accident Involving Tesla Model S in California
- General Motors Announces a $20 Billion Investment Electrification and Reveals its New Global EV Platform as the Automaker Looks to Take on Tesla
- China’s Auto Sales Plummet 92% This Month as Coronavirus Fears Put the Brakes on New Car Sales
- Waymo Commits to Using Safety Drivers in Autonomous Vehicles Long Term
- Tesla’s CEO Showcases How EVs Will Talk to Pedestrians
- Waymo Raises $2.25 billion in its First-Ever External Investment Round
- German Researchers Manufacture Intelligent Ears for Cars
- Chinese Automaker Lixiang Automotive Has Filed for a Confidential U.S. IPO, Sources Say
- Electric Automaker Tesla is Forced to Reduce its Workforce By 75% at its Fremont, California Factory