Elon Musk, the CEO of Tesla Motors Inc (NASDAQ:TSLA) clearly stated that the electric car maker does not have a demand problems. The real problem is the production problem as there was a loss of production for a complete one month in the last quarter due to factory retooling at Fremont facility.
The financial performance
Elon Musk answered all the queries of analysts after Tesla Motors Inc (NASDAQ:TSLA) posted quarterly earnings on Wednesday. Tesla posted profit of $0.02 per share in its quarterly earnings. Tesla trimmed its forecast for Model S sedans sales this fiscal to 33,000 from 35,000.
Musk said that people can never understand that it is hard to manufacture something. Despite halted production at its Fremont facility, it posted record sales number in September. The unit sales in the quarter came at 7,785 compared to analysts expectations of 7,892.
Musk answered clearly when media and analysts questioned him on demand problem that Tesla Motors Inc (NASDAQ:TSLA) has enough demand than it can address. Also, it has planned strategies to boost it whenever the company feels the need.
Tesla is not involved in any form of conventional advertising strategies. If needed, it can start with advertising to increase the demand. However, at this time, there is no need to implement the strategies to increase demand. The focus is to increase the production and Tesla expects to increase the annual production by more than 50% next year.
Musk also said that the battery industry is not delivering as per the set standards. Therefore, it has even plans to build a battery factory in Nevada. It will reduce production costs for Tesla and help to increase production in the coming years. However, the questions from analysts just focused on demand issue. Musk got annoyed to see that the markets and analysts are speculating that Tesla is facing shortage of demand.