Elon Musk Predicts Futures Of Tesla And Global Recession

On Wednesday, Elon Musk made several bold predictions on a Tesla earnings call, including statements about his company’s future and the prospect of a global recession.

Musk did not hold back his optimism for Tesla’s future during the third quarter earnings call, and with earnings per share $.06 higher than projected and revenue up 55% from a year ago, he had plenty to be hopeful about.

While the forecasted revenue was roughly a half billion higher than actual revenue during the quarter, Musk emphasized that operations are running smoothly and demand has never been Higher.

“I can’t emphasize enough, we have excellent demand for Q4 and we expect to sell every car that we make for as far into the future as we can see,” Musk stated. “The factories are running at full speed and we’re delivering every car we make, and keeping operating margins strong.”

Government emission restrictions and electric vehicle incentive plans are likely to bolster the company’s value in the coming years. California recently mandated that only cars producing zero emissions may be sold as of 2035.

President Joe Biden’s recently passed Inflation Reduction Act provides premium tax credits for electric car buyers, giving back $4,000 for used car purchases and $7,500 for new cars.

“I’m of the opinion that we can far exceed Apple’s current market cap,” Tesla predicted. “In fact, I see a potential path for Tesla to be worth more than Apple and Saudi Aramco combined.”

“That doesn’t mean it will happen or will be easy,” he added.

During the call, Tesla shareholders questioned Musk on the state of the global economy and its impact on Tesla’s market in China.

In response, Musk said that he is seeing a “recession of sorts” in China, while Europe is
experiencing “a recession of sorts driven by energy.” He also said that he views the American economy as in “pretty good health,” though he pointed out that the Federal Reserve should stop raising interest rates so quickly.

In addition to running one of the most successful companies in the world, Musk is also finalizing a deal to acquire Twitter.