Tesla annual shareholders meeting: ‘I’m all in on Elon Musk’
- A brief recap of everything Musk said at Tesla's annual shareholders meeting.
- Jim Cramer reacts to Elon Musk's comments on CNBC "Squawk on the Street".
- Shares of the EV manufacturer are down roughly 5.0% on Friday morning.
Tesla Inc (NASDAQ: TSLA) is down roughly 5.0% on Friday even after CEO Elon Musk made a string of positive comments at the annual shareholders meeting last night.
Key takeaways from Tesla annual shareholders meeting
- Prices for the majority of components are trending down
- We’re past peak inflation that will likely drop rapidly
- U.S. economy is unlikely to plunge into a deep recession
- Tesla will continue to ramp up spending on R&D
- A share repurchase programme is possible at some point
- Total sales will hit 100 million over the next ten years
- Location for a new giga factory will be announced soon
On the downside, Musk said the Cybertruck that’s slated to launch in mid-2023 will have different specifications and pricing than what was suggested in 2019, when the pickup was unveiled.
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Cramer agrees with Musk’s outlook on inflation
By 2030, Musk expects Tesla to be producing 20 million vehicles annually. Reacting to his “peak inflation” comment on CNBC’s “Squawk on the Street”, Jim Cramer said:
I’m all in on Musk. I think he sees it better than anyone. He’s a huge manufacturer, maybe the greatest manufacturers of our lifetimes. But he’s also very close to customers because of their unusual direct sales. So, I’m all in on what he said. He may be smarter than almost anybody.
Last month, however, the electric vehicles manufacturer reported weaker-than-expected sales for its fiscal second quarter on higher production costs, supply constraints, and resurgence of COVID-19 in China.
Tesla shares have bounced more than 40% off their low in late May. Still, Wall Street sees more upside in the stock to $942 on average.