Tesla’s Musk Says Recession Will Last Until 2024

Oct 21 (Reuters) – Tesla Chief Executive Elon Musk said on Friday he was weighing demand for its electric cars after previously saying there was “kind of a slowdown” in China and Europe.

“Just guessing, but 24 until spring,” Musk said on Twitter after a user asked him how long the recession would last. It was unclear whether Musk was talking about a global recession or expanding on the point he made Wednesday in China and Europe.

Shares of Tesla Inc (TSLA.O) The stock fell 6.6% to close at $207.28 on Thursday, a day after Musk told analysts on a conference call that weakness in China and Europe was “a little more difficult than it otherwise would be.”

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At least six brokerages lowered their price targets on Tesla Bull Wedbush Securities to $300. Tesla’s third-quarter earnings on Wednesday missed analysts’ estimates.

While Musk told analysts that Tesla had “excellent demand” in the current quarter, he said the EV maker could miss its annual delivery target due to lower transportation capacity.

Musk flip-flopped on demand during a July conference call, initially saying macroeconomic uncertainty could have some impact on demand for its electric vehicles, but when pressed for details by an analyst, the company said the demand was not a problem. Production problem.

According to a June email seen by Reuters, Musk said he had a “very bad feeling” about the economy and that Tesla would have to cut about 10% of its workforce. Later, he said the reduction would only apply to salaried workers.

Tesla shares have lost a third of their value so far this year. They fell 9% to a 16-month low on Thursday and hit a 16-month low.

“The results will add to discussions about demand destruction after tracking 3Q deliveries -5% below the company-compiled consensus,” JP Morgan said in a statement.

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Tesla missed vehicle gross margin expectations on Wednesday as costs weighed on ramping up production at its new factories in Berlin and Austin.

“Tesla now needs to prove back to the street because the bullish narrative is clearly hitting a rough patch, with a strong growth story running into myriad logistical issues as opposed to softening demand,” Wedbush analyst Daniel Ives said.

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Reporting by Dyashi Dutta, Akash Sriram and Ann Maria Shibu in Bangalore and Hyunjoo Jin in San Francisco; Editing by Shaunak Dasgupta, Matthew Lewis and Savio D’Souza

Our Standards: Thomson Reuters Trust Principles.

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