Elon Musk's $440m Autonomy Deal: 'Production Is A Much Bigger Challenge Than Demand'
Autonomy, a private electric vehicle subscription company, announced last week that it has placed orders worth $1.2 billion from 17 global automakers for 45 electric vehicles.
Autonomy's vehicle subscription platform for consumers and the automotive industry offers vehicle subscriptions as an alternative to buying traditional cars.
What happened: Tesla, Inc.'s TSLA value share of the contract is approximately 37%, with GM's VWAGY share of General Motors Corporation and Volkswagen AG at 11.6% and 9%, respectively. When the Tesla Owners Silicon Valley group asked Elon Musk on Twitter what he thought of the $440 million in orders Tesla received to supply 8,300 electric vehicles, the billionaire was cautious in his response. /p>
"Production is a much bigger challenge than demand," said Tesla CEO.
Why it matters: Musk's comments come amid challenging economic and geopolitical conditions. The resurgence of COVID in China earlier this year led to the closure of Tesla's Giga Shanghai for about three weeks in April. It took a while to get back to pre-COVID levels.
In July, Tesla had to close operations at its main Chinese factory to reorganize its facilities. This led to a sharp drop in deliveries in China last month. Additionally, EV makers are facing a supply chain squeeze as geopolitical tensions have limited the availability of key battery materials. Luxury electric sedan maker Lucid Group, Inc. LCID halved its 2022 vehicle production forecast earlier this month.
Tesla closed Friday's session up 4.68% at $900.09, according to data from Benzinga Pro.
Photo: created with an image by Steve Jurvetson on Flickr
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Autonomy, a private electric vehicle subscription company, announced last week that it has placed orders worth $1.2 billion from 17 global automakers for 45 electric vehicles.
Autonomy's vehicle subscription platform for consumers and the automotive industry offers vehicle subscriptions as an alternative to buying traditional cars.
What happened: Tesla, Inc.'s TSLA value share of the contract is approximately 37%, with GM's VWAGY share of General Motors Corporation and Volkswagen AG at 11.6% and 9%, respectively. When the Tesla Owners Silicon Valley group asked Elon Musk on Twitter what he thought of the $440 million in orders Tesla received to supply 8,300 electric vehicles, the billionaire was cautious in his response. /p>
"Production is a much bigger challenge than demand," said Tesla CEO.
Why it matters: Musk's comments come amid challenging economic and geopolitical conditions. The resurgence of COVID in China earlier this year led to the closure of Tesla's Giga Shanghai for about three weeks in April. It took a while to get back to pre-COVID levels.
In July, Tesla had to close operations at its main Chinese factory to reorganize its facilities. This led to a sharp drop in deliveries in China last month. Additionally, EV makers are facing a supply chain squeeze as geopolitical tensions have limited the availability of key battery materials. Luxury electric sedan maker Lucid Group, Inc. LCID halved its 2022 vehicle production forecast earlier this month.
Tesla closed Friday's session up 4.68% at $900.09, according to data from Benzinga Pro.
Photo: created with an image by Steve Jurvetson on Flickr
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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