With its strong growth track, Tesla CEO Elon Musk is confident that the company is in for “an epic end of [the] year.”
For the automaker, the third quarter of 2022 is another record quarter in various ways. The brand’s industry-leading operating margin reached 17 percent. Free cash flow exceeded $3 billion and hit $9 billion in the past 12 months.
Tesla’s Ramped-Up Production
As the company’s factories worldwide ramp up, Tesla looks forward to a record-breaking fourth quarter. Elon Musk seems excited about the brand’s success and sees the potential for growth.
“As our factories ramp up, we’re looking forward to a record-breaking Q4. So it really, knock on wood, looks like we’ll have an epic end of [the] year. So, Q4 is looking extremely good.” says Musk.
He also talked about the current successes of the automaker. Giga Berlin reached another breakthrough in September by producing 2,000 vehicles per week.
It is worth noting that all produced vehicles have excellent quality, an important indicator. He said ramp-up is going well, extending hope for the factory’s fourth-quarter output.
Although on October 19, Giga Texas had not yet reached production targets of 2,000 vehicles per week. The CEO stated it should happen very soon, possibly talking about it in the next week or so.
He said the company “extrapolated yesterday’s build rate, it would be 2,000” on October 18. As production in Fremont factory and Giga Shanghai proves to be solid, fourth-quarter results should present to be good.
New 4680 Battery Cells
In addition to manufacturing cars, the automaker is also on its way to producing its new 4680 battery cells. He noted that production tripled in the third quarter from the previous quarter.
He also said that output is growing rapidly, and the company expects these cells to be used in vehicles and become a crucial part of Texas production in the coming months, which could positively impact the fourth quarter and year 2022 results.
This can and will be made possible by the company’s second-generation 4680 cell manufacturing facility in Texas, which is continuously progressing with its pilot line in Fremont.
“Let’s see, with respect to demand. We’ve got a lot of questions about demand in recent weeks. I can’t emphasize enough, we have excellent demand for Q4, and we expect to sell every car that we make for as far into the future as we can see.”
He reiterated that despite all the concerns expressed by analysts and investors, demand for its cars remains high. He conveyed his confidence that the company will be able to sell every vehicle the brand produces as far as the manufacturer can see into the future.
He said that factories are running at full capacity, and the company delivers every car it makes, and is maintaining a high operating profit. Currently, Tesla has around 3.5 million vehicles on the road.