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Tesla earnings call: Elon Musk made his boldest prediction to date



Elon Musk has revealed his boldest, weirdest prediction for Tesla – only the market isn’t buying it right now.

Stocks are set to open lower after a series of rare inline results as investors, beware of the possibility of Musk selling stocks to pay for his $44 billion Twitter deal, predicting a bullish outlook on the call.

And whether by design or by accident, the visionary CEO delivered his most authoritative summary of the business to date.

Every part of Tesla is firing at all cylinders, with only a small crack detected in its armor.

Musk, currently working on the third part of his Master Plan to scale his business, predicting on Wednesday his $700 billion company will climb the rankings to become the world’s most valuable company.

But he didn’t stop at just tripling its market cap to go from 6order set to 1stnot with a long shot.

“I see a potential path for Tesla to be more valuable.” Apple and Saudi Aramco combine,” he said on the call, referring to the state-owned oil giant based in Dharan. “This is the first time I see that potential.”

He didn’t pass if you think the promise of a $4.5 trillion company is enough to turn the bearish sentiment around. Later in the call, Musk added that the robotics company has been rebranded and that the AI ​​company hasn’t even included this year. The most important brand new product.

“By the way, I should have mentioned when I said I saw a path,” he said, “I didn’t include Optimus.”

Anyone can guess how much extra money his growing bipedal robot could contribute. But Musk predicts his Optimus droid will usher in a new era, an “age of abundance” where the only goods and services not available for free are those that we choose to make scarcely available. conscious.

There is no end to growth in sight

But even his most dedicated investors can’t always wait until then. So he pulled all the stops, telling investors that the company’s prospects had never been brighter for its shareholders.

BUY SHARES: Musk says Tesla board discussed value of recent acquisition needs and believe that the company can easily take on a task regardless of the business environment.

“We can definitely do a buyback on orders of $5 to $10 billion even in a bearish scenario for next year. Even if next year is a very difficult year,” Musk said. “It’s likely we’ll make some meaningful acquisitions.”

WHAT COMMENTS?: Recession does not play any role in Tesla’s plan, all targets are set on positive growth.

“I cannot stress that we had high demand in Q4 and we expect to sell all the cars we produce in the future,” the Tesla CEO said.

In fact, the company should continue to increase vehicle deliveries to customers at an average rate of 50% or more now. Provided that, of course, Musk can find enough ships, trains, and trucks to ship them — the reason for the disappointing Q3 sales was because “there weren’t enough shipping objects.” In his words, Tesla was too big.

SEMI RAMP-UP: Musk says he will personally be there to deliver the first Semi commercial trucks to Pepsico on December 1st finally, and after a long, gradual stretch that spans every year, he is projecting production of 50,000 units by 2024 — for North America alone.

THE NEXT GENERAL CELL: Last quarter, Musk acknowledged the difficulty of getting his 4680 cells to meet his expectations. The volume has now tripled from the previous quarter and the focus is now shifting towards cost optimization. “In short, ramp 4680 is growing exponentially,” he said.

TERRITORY – Musk said the company is putting the “springboard for metal” to get to the fastest possible speed of 1,000 gigawatt-hours producing 4680 hours in-house per year in the US alone, and this includes all processing steps. main battery cell management down to anode and cathode production, and even lithium refining.

Many companies that focus solely on battery cell production are not even vertically integrated and depend on suppliers. When exactly this goal will be achieved is unclear, but his massive new GigaTexas plant is now designed to produce 100 GWh of cells. Importantly, this 10-fold increase to 1 terawatt-hour does not include additional volume from external vendors.

CYBERTRUCK: The company is in the final stages of preparation with the tool starting from GigaTexas. “We are still on track to go into production early next year.” Lars Moravy, head of engineering, said on the call. With hopes running high on Tesla’s first pickup truck, Musk notably avoided answering a question about its probable price tag.

NEXT GENERATION VEHICLES: With development work on the Semi and Cybertruck now complete, attention is turning to a lower-priced entry model, billed by the media as the first low-cost robotaxi to be completely without a steering wheel or steering wheel. pedal.

Musk said the goal is to halve the costs of the larger Model 3/Y platform, and he predicts output will quickly exceed all of Tesla’s other vehicles combined.

Almost perfect

Summarize then, Musk said the company is headed for a $4.5 trillion market cap even without factoring in a robot he hopes will revolutionize its business thanks to an unprecedented future. ever had. He may have just revealed the core mindset of his Master Plan, it’s time to help him fund his Twitter purchases.

This happened by accident at a time when he could start selling after the window opened, which experts say will take up to two days after Tesla unveils Tesla’s upcoming 10-Q filing. with the SEC.

In fact, there was only one minor concern mentioned by Musk. His engineers may not succeed in delivering a supercomputer nicknamed Dojo that is better able to train AI neural nets than is currently possible. GPU Cluster buy from chip manufacturer Nvidia.

“The jury is still out on Dojo,” he said, adding that this won’t affect the widespread release of Full Self-Driving this quarter to every customer still waiting to join the test. beta lasts two years.

It just goes to show that even Elon Musk is not perfect.

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