Elon Musk Posts 2019 Tesla Production Forecast – Then Retracts It

Tesla CEO Elon Musk, who has previously been in hot water with the SEC for his reckless social media posts, recently tweeted Tesla production guidance for 2019 before retracting the figures just hours later.

Tesla CEO Elon Musk is known for making outlandish claims about his various companies, such as when he tweeted that he had the “funding secured” to take Tesla private; a tweet which resulted in $40 million in fines from the SEC and the removal of Musk as director of Tesla’s board. In a recent example, Musk promised flying cars in the near future. Tesla is still currently under investigation by the DOJ and the SEC with the companies production figures and projections being called into question.

This week, Musk tweeted: “Tesla made 0 cars in 2011, but will make around 500k in 2019.” 

Tesla seems unlikely to hit a goal of 500,000 cars in 2019, based past production levels. In its report on Musk’s initial tweet, Bloomberg stated that Musk’s production goals were: “difficult to gauge, given his proclivity for setting stretch goals.”

Musk later attempted to clarify this tweet stating in another that the “annualized production rate at end of 2019 probably around 500K, ie 10k cars/week.” Musk then stated that the actual number of cars delivered for 2019 may be around 400,000.

It wasn’t long before users across Twitter began to question Musk’s initial claims of producing 500,000 cars in 2019.

In the fourth quarter, Tesla delivered 63,150 Model 3s, 13,500 Model S sedans and 14,050 Model X SUVs. In comparison, Wall Street projected 64,900 for the Model 3, 14,200 for the Model S and 13,600 for the Model X, based on average figures from previous quarters compiled by FactSet. CEO Elon Musk discussed the company’s latest issue stating: “What people should absolutely have zero concern about, and I mean 0, is that Tesla will achieve a 10,000 unit production week by the end of next year. […] I think people should really not have any concerns that we won’t reach that outcome from a production rate.”

Musk should be careful of angering the SEC following the consequences of his last risky tweet; but Musk’s opinion of the SEC is well known, at one point saying in a December 2018 interview with 60 Minutes saying: “I do not respect them.

Following Musk’s tweets, Tesla General Counsel, Dane Butswinkas, left the company just two months after joining the executive team.