FastLane: The end of the EV rebate, Tesla’s door defects were found, and Aliya was pulled out of the US market.
Dave Spencer has been telling the biggest story in the world of automobiles since last week.
Fox-2 Detroit
Tesla surprised Wall Street with record quarterly sales as consumers rushed to steal electric vehicles before the federal tax credit expired, analysts said.
The EV Giant delivers record 497,099 vehicles worldwide between July and September, up 7.4% from a year ago, surpassing the average analyst estimate of 439,600 compiled by Bloomberg. Combined sales of the Model Y SUV and Model 3 sedan increased by 9.4% to 481,166 vehicles, Tesla said.
Tesla’s stock fell on October 2nd, but according to Forbes, it easily captured the previous day value of Tesla CEO Elon Musk, which exceeded $500 billion. According to Forbes, this is the first time anyone has been worth this much.
Tesla’s powerful performance was not surprising. Ford recorded sales of EVs over the same period, and GM doubled sales, but analysts warned that the good times may not last as the $7,500 tax credit expired. Credits for the new EV purchase expired on September 30th.
“The future is extremely uncertain as these credits are no longer available,” said Kevin Roberts, director of economic and market information at research and shopping site Cargurus. “We expect EV demand to decline after this recent sales, particularly in response to the availability of tax credits, but how quickly it could fall.”
What do EV manufacturers predict?
EV manufacturers are hoping to see sales slower. “We’ve already seen many automakers cancel or scale back EV product plans,” Roberts said.
Ford CEO Jim Farley Ford recently estimated that EV demand could be in half with the expiration of the tax credit.
He also said companies are adjusting prices and adjusting braces to slow down. Hyundai cut the price of electric-ion SUVs, and Tesla increased the lease price, he said.
Even Mask has already outlined the company’s pivots for self-driving cars and robots. He also focuses on more advanced technologies such as artificial intelligence and energy deployment.
Why do Tesla stocks continue to rise?
Investors have looked past the ambiguous outlook for Tesla’s major business sales EVS, as they believe Musk can lead the company to the next big thing.
It also helps Tesla’s board and musk develop confidence. Board proposal investors vote for a new $1 trillion salary plan for masks. The full award offers more than 423 million additional shares to Mask.
Musk is already Tesla’s largest shareholder, earning about 12% of the company’s stake. Last month, Musk purchased approximately $1 billion worth of Tesla stock, the first open market purchase of the electric car maker’s stock since February 2020, regulatory filings showed.
As a result of that optimism, Tesla shares rose about 15% this year.
Is Elon Musk the wealthiest person in the world?
Recent profits from Tesla stocks have helped Musk regain the title of the world’s wealthiest person from Oracle CEO Larry Ellison, and become the first person to surpass his $500 billion net worth, Forbes said.
In a short time as the world’s wealthiest person on September 10, after Oracle’s stock surged due to strong revenues and AI cloud contracts, Ellison returned to second place with a fortune of around $350.7 billion.
Ellison’s net worth peaked at $393 billion.
Medora Lee is a money, market and personal finance reporter for USA Today. You can contact her at mjlee@usatoday.com and subscribe to our free daily money newsletter for personal finance tips and business news every Monday to Friday morning.
