Tesla Stock Slides as CEO Eyes Profitability by 2020

Tesla Stock Slides as CEO Eyes Profitability by 2020

Tesla stock took a hit as Elon Musk gave a speech earlier today.

Speaking at the Automotive News World Congress, Tesla CEO Elon Musk admitted that the American electric automaker won’t be profitable until 2020 and that sales in China has been disappointing in the fourth quarter of 2014. The company’s CEO pointed to misunderstandings by the Chinese market on Tesla’s charging infrastructure and stated that those have been cleared up. The company’s stock fell six percent closing at $193 a share and dipped as low as $188 before recovering.

Musk also stood by his claim that the American electric automaker will sell 500,000 vehicles per year by 2020 and is looking forward to selling a few million cars per year by 2025. He confirmed that Tesla will begin deliveries of its Model X crossover this summer and that the company has already sold out of its planned production run for this year, so any customer that orders a Model X today will get it next year.

SEE ALSO: Tesla Working on ‘Metal Snake’ Charger

During the same speech, Musk also urged automakers to accelerate the development and sale of EVs especially as gas prices continue to drop nationwide. During his speech, Musk urged the rest of the automotive industry to move more urgently with EVs to counter climate change while warning against the temptation to slow down as oil prices drop.

“We can’t rely on scarcity to drive the price of oil and gas and rely on that to be an adequate forcing function” to speed adoption of EVs, Musk said. “So we have to figure out how to do it without high oil and gas prices.”

GALLERY: 2013 Tesla Model S

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[Source: Automotive News]

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