Elon Musk Drops Epic Hint
In 2009, Tesla had $73 million of revenue for the entire year. In 2021, Tesla's total revenue was $53.82 billion. This is a 500 times amount of revenue from 2009. Tesla is accelerating faster and faster.
Elon Musk stated that Tesla's production will not exceed the mass of the known universe. Elon has a scale of production in mind that would likely make most people laugh at him. Here we have Dan Ives talking about Tesla, from the news.
Tesla has done a 3 for 1 stock split and Dan's price target is now $360 a share after the split. For him, Tesla's production in China is its biggest thing to understand. In the 2nd half of 2022 and into 2023, Tesla will likely be producing 2 million vehicles.
Tesla is only a 5x away from 10 million. Tesla is two doublings from 8 million vehicles. Exponential growth is difficult to understand. Tesla will eventually get to a 5 million vehicle run rate per year.
Elon's Huge Hint
You stay bullish on Tesla because their issue has always been supply and not demand. There is some global economic slow down in the world. Even if you cut down demand by 5 to 10 percent, there is still much more demand than supply for Tesla.
Tesla will continue to sell every vehicle they produce and it's not even close. Tesla can't produce enough vehicles to satisfy all the demand. As Tesla continues to ramp production and drive costs down, they will have the flexibility to lower prices with industry leading margins.
Tesla's massive supply problem is likely to last the rest of this decade or more. Tesla's margin on their vehicles will also continue to increase as Tesla makes manufacturing improvements and drives down internal costs for its own vehicles.
Elon's huge hint, as I see it, is that even in a recession, Tesla will still have an advantage and the supply chains should ease if that happens. It's going to continue to be a very profitable time for Tesla. Tesla continues to execute very well and will break all records this year.
For more information, see this video from Solving the Money Problem:
What do you think of Elon Musk's epic hint? Is Tesla executing impeccably this quarter?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.