SpaceX Chief Engineer Elon Musk takes half in a joint information convention with T-Mobile CEO Mike Sievert (not pictured) on the SpaceX Starbase, in Brownsville, Texas, U.S., August 25, 2022.
Adrees Latif | Reuters
Elon Musk sees components of a recession in China and Europe and says that the U.S. Federal Reserve is elevating rates of interest by an excessive amount of.
But when requested on Tesla’s third-quarter earnings name on Wednesday how his electrical automotive firm will fare in a possible recession, the world’s wealthiest particular person expressed little concern.
“To be frank, we’re very pedal to the metal come rain or shine,” Musk stated in response to an analyst’s query. “We are not reducing our production in any meaningful way, recession or not recession.”
Tesla reported adjusted earnings of $1.05 per share, topping analysts’ estimates of 99 cents per share. The inventory dropped 5% in prolonged buying and selling as income got here in at $21.45 billion, lacking analysts’ expectations of $21.96 billion. The firm has misplaced 45% of its worth this 12 months.
Musk has been essential of the Fed, which has been lifting its benchmark rate of interest to attempt to tamp down hovering inflation. He continued with that theme on Wednesday.
“The Fed’s decisions make sense if you’re looking in the rear-view mirror not if you’re looking out the windshield,” Musk stated.
Still, even with the price of capital on the rise alongside the costs for items, Musk sees Tesla doing OK as electrical autos change gas-powered vehicles.
“The public at large realizes that world’s moving towards electric vehicles, and it’s foolish to buy a new gasoline car at this point because the residual value of that gasoline car is going to be very low,” Musk stated. “So, we’re in a very good spot.”
Musk added, “I wouldn’t say it’s recession-proof but it’s recession-resilient, because basically the people of Earth have made the decision in large part to move away from gasoline cars.”
The Tesla CEO additionally commented on his pending $44 billion acquisition of Twitter. He’s presently enmeshed in a authorized battle with the social media firm though he lately modified course and stated he would observe by along with his buy settlement.
Musk stated he’s “excited about the Twitter situation” and that the corporate has “sort of languished for a long time but has incredible potential.”
“The long-term potential for Twitter is an order of magnitude greater than its current value,” Musk stated.
WATCH: Gene Munster breaks down Tesla earnings
Source: www.cnbc.com”