This earnings call had a little bit of everything: fighting spirit, joy, relief.
And a confidence boost for the CEO by once again proving his naysayers wrong.
On January 25, Elon Musk and Tesla had come to kill. They came out swinging, certain that the blows they were about to land were going to land, and they hurt badly.
They made clear their confidence that they would maintain their dominant market position and technological advantage in electric vehicles.
Here is the boss’s initial uppercut.
“The most common question we get from investors is about demand,” Musk began. “So I want to put that concern aside. So far in January, we’ve seen the strongest orders to date than ever in our history.
“We’re currently seeing orders at almost double the production rate. So I want to say it’s hard to say if it will continue to double the production rate, but orders are high.”
As a result, Tesla has raised the price of the Model Y, Techno King added. “So we think demand will be good despite a likely contraction in the auto market as a whole.”
In fact, the base price of the long-range Model Y SUV in the US had fallen to $52,990 but has now risen $500, or 1%, to $53,490, according to the company’s website.
Musk roasts analysts
Musk took aim at financial analysts, who warned that the company’s January 12 price cut to 20% from 7% for Tesla cars would squeeze profit margins.
Musk, who sees himself as a CEO close to the people, borrowed a line of attack that politicians like. He even looked like he was running for office.
He explained that, in fact, his concern is to make Tesla cars accessible to everyone, both the rich and the less fortunate. His favorite enemy, liberal Sen. Bernie Sanders, might even clap.
“Price really matters. I think there are a lot of people who want to buy a Tesla car but can’t afford it,” the billionaire said. “So these price changes really make a difference for the average consumer.”
“Sometimes for those, for people who are well off, who have a lot of money, they forget how important affordability is. And our goal at Tesla has always been to make cars that are affordable to as many people as possible.” . so I’m glad we can do it. And yeah, I think that’s a good thing, all things considered.”
Musk is the second richest man in the world on paper with a fortune valued at $146 billion as of January 25, according to Bloomberg Billionaires Index.
Now it is the turn of his supposed competitors, the billionaire seems to think. He has heard them say for several months how much they aspire to play the leading roles in the electric vehicle segment.
He heard them quietly plotting their plans to oust Tesla. Ford, General Motors, Volkswagen, Honda, Nissan, BMW, Mercedes-Benz, Rivian and others say they are gaining market share.
Musk suggests Tesla doesn’t have much of a threat
He heard analysts predict that Tesla’s ultra-dominance is waning and will inevitably come to an end in the next few years. Musk listened to all this in silence. But it seems that he can’t contain himself anymore.
“I’m curious how you see the current competitive landscape changing in the next few years. And who do you see as your main competitor five years from now?” asked Canaccord analyst George Gianarikas.
The response was scathing.
“Five years is a long time,” Musk responded. “As with the Tesla part of the order, the AI team, until last night, and we just asked, ‘so who do we think you’re close to with Tesla, a general solution for autonomous driving?’ And we still don’t even really know who a distant second would be (…) I don’t think you can see a second with a telescope, at least we can’t.”
In the total vehicle space, “I think we have a lot of respect for auto companies in China. They are the most competitive in the world. That’s our experience,” the serial entrepreneur continued.
“They work harder and smarter. So a lot of respect for the auto companies in China that we’re competing against. So, if I had guessed, there’s probably some company outside of China that’s most likely.” to be second only to Tesla”.
Tesla accompanied this bombastic with spectacular announcements. The firm will increase its production “as quickly as possible” in accordance with its growth target of 50% per year for several years.
The company, which produced nearly 1.37 million vehicles in 2022, plans to build 1.8 million this year despite a recession looming on the horizon. Musk went so far as to say that Tesla may even produce 2 million vehicles. Therefore, the company is accelerating.
‘epic fashion’
Last year, Tesla posted net income of $12.6 billion, more than double the $5.5 billion recorded in 2021. Annual revenue also hit an all-time high, hitting $81.5 billion, 51% more year on year.
The earnings call, which lasted just over an hour, was also marked by more bragging linked to Twitter, the social network Musk became owner of in late October in exchange for a $44 billion check.
The tech mogul took particular umbrage when asked if his Twitter pervasiveness and activism was hurting the Tesla brand, a criticism from some shareholders in recent months.
“Let me check my Twitter account. Okay, I have 127 million followers and it continues to grow very quickly. That suggests that, you know, I’m reasonably popular,” the billionaire replied.
Bravado and bombast to the end.
“In Tesla’s Super Bowl, Musk & Co. delivered in epic fashion,” praised Wedbush analyst Dan Ives.
Musk seems to have got his mojo back.