SpaceX and Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk spoke with FOX Business Network’s (FBN) Liz Claman about Tesla’s stock valuation and about testing the SpaceX Falcon 9 rocket. When asked whether he will prove the short sellers wrong in the end on Tesla, Musk said, “In the past I said it’s really crazy to short Tesla. Is it so crazy to short Tesla Motors Inc (NASDAQ:TSLA) right now? I mean it’s not as crazy but I still think it’s probably not a good idea.” He discussed exceeding sales targets for the Model S, saying, “We always aspire to exceed our targets; we’ll see if that happens but I am cautiously optimistic that we’ll be able to do OK on that front.” Musk also talked about testing the SpaceX Falcon 9 rocket today and said, “We’re going through that testing and I think we are almost done with that and then within about a week or two of that static fire we should be launching the next generation Falcon 9 rocket.”
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Excerpts from the interview are below.
On whether he will prove the short sellers wrong in the end on Tesla:
“Yeah, I think we’ve got a really good story in the long-term for Tesla Motors Inc (NASDAQ:TSLA). Our valuation right now is, assuming a lot of good execution on our part in the future, we’re going to do our best to work hard and make sure that investors are not disappointed. I think we’ve got some very exciting products coming out. In the past I said it’s really crazy to short Tesla. Is it so crazy to short Tesla right now? I mean it’s not as crazy but I still think it’s probably not a good idea.”
On how the test went for the SpaceX Falcon 9 rocket:
“As a test before launch we do something called a static fire where we hold down the rocket and we fire the engines and make sure everything is good. We’re going through that testing and I think we are almost done with that and then within about a week or two of that static fire we should be launching the next generation Falcon 9 rocket.”
On whether he will exceed his sales targets by year end of the Model S:
“We always aspire to exceed our targets; we’ll see if that happens but I am cautiously optimistic that we’ll be able to do OK on that front.”
On what the timeline is for the Model X SUV:
“We’re hoping to bring that to market at the end of next year and then achieve volume production in 2015 and the Model X will be an SUV version of the Model S so it’s still a premium vehicle and it’s really a third generation car that will be more of a mass market car. That’s the point at which I think we’ll be able to produce a long range car that is compelling and affordable and that’s the main breakthrough that we’ve been trying to achieve from the beginning of Tesla Motors Inc (NASDAQ:TSLA). And something that I think is maybe worth noting is every dollar we make on selling a Model S, we pour that into R&D and into building up the factory and improving the technology towards producing an affordable compelling mass market car whereas if someone were to buy a BMW or Porsche or something like that the money that say Porsche makes on that is not going into producing affordable mass market cars.”
“Actually that’s why I explicitly said when I unveiled the Hyperloop design that I am going to remain focused on Tesla Motors Inc (NASDAQ:TSLA) and SpaceX. It’s not because I don’t think the Hyperloop is good but I do have an obligation to do my best for Tesla and SpaceX and if I take on yet another thing it will be difficult to do so. I am hopeful that others will take up the Hyperloop project or something like it because I think it will be great to have something revolutionary on the mass transportation front.”