(Reuters) – Tesla Inc has “a decent shot at a record quarter on every level”, Chief Executive Officer Elon Musk said at the company’s annual shareholder meeting on Tuesday, soothing concerns about weak demand for the electric car maker’s sedans.
FILE PHOTO: SpaceX founder Elon Musk speaks at a post-launch news conference after the SpaceX Falcon 9 rocket, carrying the Crew Dragon spacecraft, lifted off on an uncrewed test flight to the International Space Station from the Kennedy Space Center in Cape Canaveral, Florida, U.S., March 2, 2019. REUTERS/Mike Blake
Tesla’s stock rose 3.6% to $225 in extended trading, and Musk also said the company was on track to hit its volume production goal by the end of this year.
Musk was treated as a star by investors at the annual meeting, receiving applause as he laid out plans for global expansion and going so far as to tell an inquiring investor that Tesla engineers “actually have a design for a submarine car”. He said making one would be a distraction and have a small market.
Analysts have questioned whether there is global demand for the hundreds of thousands of Model 3 sedans and other vehicles Tesla aims to produce, after deliveries fell 31% in the first quarter. Rivals are stepping up efforts and Tesla continues to invest heavily in expansion.
Musk’s positive comments on Tuesday echoed his forecast last month that the company was on track to hit record deliveries in the second quarter.
Tesla previously said it plans to deliver 90,000 to 100,000 vehicles to customers in the second