Tesla shares jumped almost 4% early Wednesday after the company held its annual shareholder meeting the evening prior and CEO Elon Musk told investors “there is not a demand problem.”
Wall Street analysts have grappled Tesla demand issues for months, and shares have slumped 35% this year.
Musk, who has in the past made promises that have not panned out, also said it “won’t be long before we have a 400-mile range car.”
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Elon Musk just told investors exactly what they wanted to hear.
Tesla shares rallied early Wednesday after the company’s chief executive, at the company’s annual shareholder meeting, addressed underlying vehicle demand the evening prior.
Demand is a core theme that analysts have for months said is a major issue for the automaker, leading firms up and down Wall Street to cut their earnings estimates, price targets, and investment ratings.
“I wanted to clear, there is not a demand problem, okay? Absolutely none,” Musk said, according to a Thomson Reuters transcript.
“The — sales have far exceeded production, and production’s been pretty good. So we’re actually doing well. We have a decent shot at a record quarter on every level. If not, it’s going to be very close, but we’ve got a shot at a record quarter. And 90% of orders are coming from nonreservation holders, so these are new customers.”
Read more: Elon Musk just said Tesla has a good shot of setting a record for deliveries this quarter
Tesla’s stock has plunged 35% this year, setting the name up for its worst annual performance since its 2010 initial public offering.
However, shares have seen a resurgence in the last week, rallying 23% since touching a 2 1/2-year low earlier this month. The upside comes as analysts in recent weeks have grown …read more
Source:: Business Insider