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Tesla CEO Elon Musk says price cuts triggered big demand, 2023 sales could hit 2 million vehicles

Deep price cuts this month have positioned Tesla as the initiator of a price war, but its forecast of a 37% rise in car volume for the year, to 1.8 million vehicles, was down from 2022's pace.

January 26, 2023 / 06:14 AM IST

Tesla Inc's aggressive price cuts have created a wave of demand for its electric vehicles, Chief Executive Elon Musk said on Wednesday, addressing concerns that a weak economy would throttle buyers' interest.

The company beat Wall Street targets for fourth-quarter revenue and profit earlier on Wednesday despite a sharp decline in vehicle profit margins, and it sought to reassure investors that it can cut costs and continue to generate cash as competition intensifies in the year ahead.

Deep price cuts this month have positioned Tesla as the initiator of a price war, but its forecast of a 37% rise in car volume for the year, to 1.8 million vehicles, was down from 2022's pace.

Tesla's sales prospects, as it faces a weak global economy, are a key focus for investors. The company has a long-term target of a compounded 50% annual rise in sales.