Elon Musk Admits Parnomy Then Apologizes Tech – 10 hours ago

Jakarta, CNBC Indonesia – Elon Musk apologizes to Tesla shareholders. The reason is, he openly admitted that he was worried about world economic conditions that were similar to a “storm.”

Elon Musk’s apology was delivered in an investor meeting (earnings call) after Tesla published its Q3 2023 financial report.

Tesla posted revenue from the automotive business of US$ 19.63 billion and US$ 1.56 billion from the energy generation-storage unit. Tesla’s gross profit fell 22 percent compared to the same period last year. A sharp decline occurred in operating margin, from 17.2 percent to 7.6 percent.

The company that produces electric cars and batteries, for the first time since 2019, posted revenues and profits below investor expectations.

Musk admitted that he was worried about the current condition of the world economy, especially high interest rates. He said the interest of car buyers now really depends on the size of their installments.

“If interest rates remain high or even rise higher, it will become increasingly difficult for people to buy cars,” Musk was quoted as saying CNBC International, Thursday (19/10/2023).

According to him, currently cost efficiency is everything. In fact, he compared efforts to reduce Tesla’s production costs to cruelty in television series Game of Thrones.

An employee cleans a Tesla electric car on display at the Periklindo Electric Vehicle Show (PEVS) exhibition at Ji Expo Kemayoran on (17/5/2023). (CNBC Indonesia/Tri Susilo)

Even great ships will find challenges in the midst of a stormTesla CEO Elon Musk

“I cannot stress more strongly how important cost is. We have to make our products more affordable so people can buy them,” he said.

The purchasing power factor is also the reason why they are reluctant to advertise. After a long time without spending a penny on advertising. Tesla is now starting to use digital advertising.

However, Musk emphasized that it was useless to advertise the various sophistications and features of cars that were not affordable. “[Iklan] not very helpful.”

At the end of the discussion with shareholders, Musk apologized for seeming very paranoid about the economy. According to him, world economic conditions will still be shaken because of war.

He compared Tesla to a world-class ship. “Even great ships will find challenges in a storm,” said Musk.

[Gambas:Video CNBC]

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