Reply To: Traders Market Weekly: War Drums, Bond Routes, Magnificent Seven Earnings

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Truman
Participant

Tesla shares were initially up slightly, but moved into the red during the earnings call when CEO Elon Musk tried to rein in expectations on the Cybertruck.

“I mean, we dug our own grave with Cybertruck,” Musk said. “Cybertruck’s one of those special products that comes along only once in a long while. And special products that come along once in a long while are just incredibly difficult to bring to market, to reach volume, to be prosperous.”

“I do want to emphasize that there will be enormous challenges in reaching volume production with the Cybertruck, and then in making a Cybertruck cash flow positive,” he said.

“So, I just want to emphasize that while I think this is potentially our best product ever and I think it is our best product ever, it is going to … require immense work to reach volume production and be cash flow positive at a price that people can afford.”

Musk said it will take “a year to 18 months before it is a significant positive cash flow contributor.”

“I think we’ll end up with roughly a 0.25 million Cybertrucks a year, I don’t think we’re going to reach that output rate next year. I think we’ll probably reach it sometime in 2025. That’s my best guess.”