The electric vehicle company posted earnings per share of $1.05 in the third quarter, slightly higher than the $0.99 expected by analysts. It earned $21.45 billion in revenue, falling short of the forecasted $21.96 billion. Musk, however, said that demand for the company’s vehicles is soaring, according to a report from CNBC.
“I can’t emphasize enough, we have excellent demand for Q4 and we expect to sell every car that we make for as far into the future as we can see,” Musk said. “The factories are running at full speed and we’re delivering every car we make, and keeping operating margins strong.”
State and federal policymakers are enacting new incentives for electric vehicle ownership. A recent set of guidelines from the California Air Resources Board mandates that all new cars sold in the state must produce zero emissions by 2035, while the governments of Massachusetts, Washington, and Virginia have enacted legislation adopting the California standards. President Joe Biden recently signed the Inflation Reduction Act, which includes $7,500 tax credits for some new electric vehicles and $4,000 tax credits for used ones.
Musk said that Tesla, given the seemingly limitless demand for its products, could become one of the most valuable companies in the world. “I’m of the opinion that we can far exceed Apple’s current market cap,” he said. “In fact, I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined. That doesn’t mean it will happen or will be easy.”
Tesla’s automotive revenue constituted a 55% increase from one year ago. The company expects to maintain 50% annual growth in vehicle deliveries across the span of several years.
The world’s richest man is also preparing to acquire Twitter after merger negotiations and legal proceedings that have lasted for several months. The social media platform had been fighting Musk in court over his attempt to cancel a previous offer to buy the company for $44 billion, a move he said was driven by concerns that executives were underestimating the actual number of fake accounts on the platform. Musk revived his efforts to purchase Twitter earlier this month.
“I think it’s an asset that has sort of languished for a long time but has incredible potential,” Musk said on the earnings call. “The long-term potential for Twitter is an order of magnitude greater than its current value.”
Beyond his concern about fake accounts, Musk has voiced criticism over lackluster support on Twitter for free expression. He began his shakeup campaign several months ago with a poll for his millions of followers regarding the platform’s adherence to the principle of free speech.
After Tesla shareholders asked about the global economy and its impacts on business in China, Musk remarked that the communist nation is experiencing “a recession of sorts,” while Europe is likewise seeing “a recession of sorts driven by energy.” He believes that North America, in contrast, is in “pretty good health,” although he said that the Federal Reserve is raising rates too quickly and will eventually adopt a more even-handed approach.