Tesla CEO Elon Musk gave three surprising predictions in the earnings call on Wednesday (19th), including the fourth-quarter delivery forecast, Tesla’s valuation exceeding Apple and Saudi Aramco combined, and Twitter Acquisition prospects.
Tesla reported mixed third-quarter earnings after the bell on Wednesday, with revenue of $21.45 billion, missing the $21.96 billion expected by Refinitiv, adjusted earnings per share of $1.05, beating expectations, and gross margin unchanged from the previous quarter at 27.9%, lower than the annual growth rate of 30.5% in the same period last year. Tesla (TSLA-US) closed 0.84% in the red on Wednesday, and shares plunged more than 4% after hours.
Tesla CEO Elon Musk made a number of predictions in the earnings call on Wednesday (19th) as follows:
Fourth-quarter deliveries expected to hit record high
Tesla produced more than 365,000 vehicles and delivered more than 343,000 vehicles in the third quarter of 2022, breaking records but still falling short of analysts’ expectations. Tesla said that due to busy logistics, supply chain issues and high freight rates, it has become a challenge to ensure vehicle shipments.
“We’re looking forward to a record fourth quarter, and it looks like we’re going to have an epic year-end,” Musk said on Wednesday’s earnings call.Tesla had excellent demand in Q4 and expect to sell ‘every EV’ we make for the foreseeable future。」
Musk mentioned rapid progress in 4680 battery production, a beta release to all North American “Full Self-Driving” (FSD) users is expected in the fourth quarter, and a possible $5 billion to $10 billion treasury stock plan.
Tesla’s market value is likely to exceed that of Apple and Saudi Aramco combined
Musk also offered his views on Tesla’s potential future value, predicting: “It’s possible that Tesla’s valuation is bigger than Apple and Saudi Aramco combined, which doesn’t mean that’s going to happen, it doesn’t mean that It’s very easy to do. In fact, I think it’s going to be very difficult and requires a lot of work, some very creative new products, massive expansion, and luck.”
This is not the first time Musk has made similar remarks. Musk once said at the February 2015 earnings conference: “Give me ten years and Tesla can catch up with Apple in market value.”
apple (AAPL-US) currently has a market value of $2.31 trillion, Saudi Aramco has a market value of about $2.09 trillion, and Tesla has a market value of $695.756 billion, still far behind the two companies.
Twitter has huge potential
Asked about the Twitter acquisition, Musk responded: “The Twitter acquisition is on track, and I’m excited about the state of Twitter, even though I and other investors are overpaying for it, in a way. , Twitter is an asset that has been ‘shrinking’ in value over a long period of time, but has incredible potential.”
Twitter (TWTR-US) closed up 0.077 percent at $51.83 a share on Wednesday, still slightly lower than Musk’s $54.20 a share offer, and rose more than 1 percent after the bell, spurred by Musk’s talk.
Asked if Tesla, SpaceX and Twitter will eventually merge to reduce risk? Musk responded: “I’m not Warren Buffett, I want to work and design products. I’m an engineer, manufacturer, and technologist, all actually working, designing and developing products, at least for now, there are no obvious mergers and acquisitions. company’s reasons.”