SpaceX Chief Engineer Elon Musk takes half in a joint information convention with T-Cell 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.
However when requested on Tesla’s third-quarter earnings name on Wednesday how his electrical automobile firm will fare in a possible recession, the world’s wealthiest individual expressed little concern.
“To be frank, we’re very pedal to the steel come rain or shine,” Musk mentioned in response to an analyst’s query. “We aren’t decreasing our manufacturing in any significant manner, 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 corporate has misplaced 45% of its worth this yr.
Musk has been essential of the Fed, which has been lifting its benchmark rate of interest to try to tamp down hovering inflation. He continued with that theme on Wednesday.
“The Fed’s choices make sense for those who’re trying within the rear-view mirror not for those who’re looking the windshield,” Musk mentioned.
Nonetheless, 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 general public at massive realizes that world’s shifting in direction of electrical autos, and it is silly to purchase a brand new gasoline automobile at this level as a result of the residual worth of that gasoline automobile goes to be very low,” Musk mentioned. “So, we’re in an excellent spot.”
Musk added, “I would not say it is recession-proof however it’s recession-resilient, as a result of principally the folks of Earth have made the choice largely to maneuver away from gasoline vehicles.”
The Tesla CEO additionally commented on his pending $44 billion acquisition of Twitter. He is presently enmeshed in a authorized battle with the social media firm though he lately modified course and mentioned he would comply with by together with his buy settlement.
Musk mentioned he’s “excited in regards to the Twitter scenario” and that the corporate has “kind of languished for a very long time however has unbelievable potential.”
“The long-term potential for Twitter is an order of magnitude larger than its present worth,” Musk mentioned.
WATCH: Gene Munster breaks down Tesla earnings