Tesla CEO Elon Musk’s opening remarks at the annual shareholder’s meeting went straight to a question that’s been looming on the automaker since it reported wider-than-expected losses and a one-third drop in deliveries in the first quarter: demand.
“We get that question a lot. I need to be clear, there is not a demand issue,” Musk explained.
However he didn’t stop there. Musk immediately added that earnings have surpassed production. “Production was fairly great,” Musk explained. “So Tesla has a nice shot in a record quarter on every level — or even , it’s likely to be quite near. ”
Tesla reported in April it delivered 63,000 of its electric vehicles in the first quarter of the year, nearly a one-third drop from the previous quarter. Tesla cautioned, at the time, it anticipated first-quarter profits would be negatively impacted by lower than anticipated shipping volumes and lots of pricing adjustments.
And that demonstrated out, when just a few weeks after Tesla reported wider than anticipated loss of $702 million, approximately $4.10 a share.
Tesla blamed the striking difference in amounts on its efforts to raise deliveries of its Model 3 electric vehicle in Europe and China, that has been fraught with challenges and induced flaws.
However, shipping number and the losses prompted speculation which Tesla had what seemed like a requirement dilemma, a problem it’d never experienced before.
Musk attempted to quell those issues during the shareholder’s meeting Tuesday in Mountain View, Calif.. He said that 90 percent of the orders are coming from non-reservation holders also that 63 percent of its trade-ins are from non-premium categories. “Which means folks are trading up to purchase the Model 3,” he added.
Buy Tickets for every event – Sports, Concerts, Festivals and more buy tickets