Tesla lowers 2030 sales target as boards explore SpaceX merger

Tesla has set a goal of selling 5 million vehicles annually by 2030, sharply below Elon Musk’s earlier ambition of 20 million, as the company expands its focus from electric cars to artificial intelligence and robotics.

Musk said during Tesla’s Wednesday earnings presentation that the automaker had a “good shot” at reaching the target and was adding manufacturing capacity. Tesla delivered 1.6 million vehicles last year. Third-quarter deliveries totaled 486,532, 2% fewer than a year earlier but above analysts’ forecasts, according to The Irish Times.

Tesla reported quarterly revenue of about $28 billion and adjusted net income of $1.7 billion, down 4% from the prior year but slightly ahead of Wall Street expectations. Its shares fell about 3% in after-hours trading as investors weighed the results and Musk’s warnings that scaling robotics and chip manufacturing would take time.

The results followed confirmation that independent directors at Tesla and SpaceX have formed special committees to consider combining the companies. Discussions are at an early stage, and advisers have been hired, the Taipei Times reported. Structures under consideration include SpaceX acquiring Tesla or placing both companies under a new holding company.

Musk, chief executive and a major shareholder of both companies, said he cannot participate in the committees because he is a conflicted party. He also said a transaction would require support from holders of a majority of all outstanding Tesla shares, meaning uncast shares would effectively count against it. No merger terms or valuation have been announced.