However, analysts have raised concerns about demand for Tesla's vehicles. On January 13th, the company lowered prices in its two largest markets, the US and China, by up to 20% on some models. This led many analysts to believe that demand had fallen due to high prices and rising interest rates. Morgan Stanley analyst Adam Jonas stated in a note to investors, “In our view, the price cuts are indeed a response to slowing incremental demand relative to incremental supply”.
Tesla also announced plans to produce around 1.8 million vehicles this year, ahead of a predicted 50% annual growth rate. The company also revealed that it has rolled out its "Full Self-Driving" software to 400,000 users and recognized $324 million from the software during the quarter. However, the software is not fully autonomous and Tesla cautions drivers to be ready to intervene at any time.
In addition, the company confirmed plans to invest $3.6 billion to expand its manufacturing capabilities in Nevada for the "high-volume" production of electric semi-trucks and to produce enough cell batteries for 2 million light-duty vehicles annually. Nevada Governor Joe Lombardo announced plans to join Tesla CEO Elon Musk and other officials to unveil a new $3.5 billion advanced manufacturing facility for electric trucks in Nevada.
Source: AP