Elon Musk says Tesla is ‘pedal to the metal’ even with potential recession looming

On Tesla’s third-quarter earnings call, CEO Elon Musk said the company is not cutting production “in any meaningful way, recession or not recession.”
“We’re very pedal to the metal come rain or shine,” Musk said.
Regarding Musk’s proposed $44 billion acquisition of Twitter, he said that the company “sort of languished for a long time but has incredible potential.”

Elon Musk sees elements of a recession in China and Europe and says that the U.S. Federal Reserve is raising interest rates by too much.

But when asked on Tesla’s third-quarter earnings call on Wednesday how his electric car company will fare in a potential recession, the world’s wealthiest person expressed little concern.
To be frank, we’re very pedal to the metal come rain or shine,” Musk said in response to an analyst’s question. “We are not reducing our production in any meaningful way, recession or not recession.”

Tesla reported adjusted earnings of $1.05 per share, topping analysts’ estimates of 99 cents per share. The stock dropped 5% in extended trading as revenue came in at $21.45 billion, missing analysts’ expectations of $21.96 billion. The company has lost 45% of its value this year.

Musk has been critical of the Fed, which has been lifting its benchmark interest rate to try and tamp down soaring inflation. He continued with that theme on Wednesday.

“The Fed’s decisions make sense if you’re looking in the rear-view mirror not if you’re looking out the windshield,” Musk said.

Still, even with the cost of capital on the rise alongside the prices for goods, Musk sees Tesla doing OK as electric vehicles replace gas-powered cars.