Tesla could sell 2 million EVs in 2023 as price cuts spark demand: Musk

SAN FRANCISCO - Tesla's aggressive price cuts have ignited demand for its electric vehicles (EVS), chief executive Elon Musk said on Wednesday, playing down concerns that a weak economy will throttle buyers' interest.

The company slightly 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 to cope with recession and 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 per cent rise in car volume for the year to 1.8 million vehicles was down from 2022's pace.

Tesla's sales prospects, as it confronts a weaker economy, are a key focus for investors. The company said it maintains a long-term target of a compounded 50 per cent annual rise in sales.

Mr Musk addressed the issue at the start of a call with investors and analysts.

"These price changes really make a difference for the average consumer," he said, adding that vehicle orders were roughly double the production in January, leading the automaker to make small price increases for the Model Y sport utility vehicle.

Mr Musk, who has missed his own ambitious sales targets for Tesla in recent years, said that deliveries in 2023 could hit two million vehicles, absent external disruption.